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Dykstra: Attention All Detractors

Lenny Dykstra

I take particular gratification when I can prove my detractors wrong. And I love to show newcomers who aren't quite sold on my system that it does in fact work, even when some picks look painful at points. Over the last two months, I have gotten quite a few emails questioning my picks in the investment banks and financial stocks.

To be specific, many were concerned about the status of my Citigroup(C Quote), Morgan Stanley (MS Quote), Wachovia(WB Quote) and AIG(AIG Quote) picks.

My response to those writing in was simple: Keep the faith, stand tall. I told them we have plenty of time because we picked January options.

I had a big day yesterday, grabbing three more wins. Wachovia is the only one of the four picks that still remains on the board. Citi and AIG both crossed the finish line on Wednesday. Morgan Stanley turned in a huge $13,860 win last week.

I first picked Citigroup (Jan $20 calls) in a free column that was posted on TheStreet.com on May 20. The stock went down and we needed to average down (or rebuy) six additional times, giving us a total of 70 contracts. We lowered our average entry price to $2.40. In all, we committed $16,800 to the position. But it was well worth it ... $7,150 worth it. Yesterday, Citigroup moved into the win column.

Citigroup was a great play. Some of my picks require an initial investment of more than $16,800. Citigroup required that much only after several rebuys. Look at the profit compared to the investment plunked down.

AIG is a similar story. I had originally picked AIG (Jan 25 calls) back on June 17 in a free column I posted on TheStreet.com. The pick stayed in play 36 days and required us to average down (or rebuy) six times for a total of 70 contracts. That means we committed a total of $41,300 to the position and came away with a $6,850 win. Remember, this method is scalable, so you can purchase one contract at a time, or 10, or 20 -- whatever you feel comfortable with.

AT&T(T Quote) was the third pick to cross the finish line on Wednesday. This one stayed in play for just five days and brought us a $1,000 win. Earlier in the week we also grabbed a win with United Technologies (UTX Quote). It was Monday's pick and scored a win on Tuesday.

When all was said and done, I racked up $15,000 with three wins yesterday and $16,000 with four picks this week.

Oh, and as for Wachovia -- it's not there just yet, but it is coming around. This pick once looked like it was left for dead, but is now back in the game. In fact, yesterday it climbed to within 80 cents of our good-till-cancel (GTC) sell price, meaning some could have sold it for a profit if they wanted to.

Remember: Life is a game, enjoy the ride.