Dykstra: Money Player

It was not an appearance destined to earn an Academy Award, as Cuba Gooding Jr. won for his supporting role in Jerry Maguire. But last Tuesday, Jan. 24, CNBC was kind enough to allow me to "show you the money!"

Being recognized by CNBC, the most prominent financial news television network, for my business and financial acumen was incredibly gratifying. But most importantly, my time on camera provided a great example of just how powerful my low-risk, high-reward deep-in-the-money calls strategy can be.

Indeed, on CNBC last Tuesday I recommended buying 10 of the June $35 Dow Chemical deep-in-the-money calls. Anyone who followed my advice was then in control of 1,000 shares of Dow Chemical until the third Friday in June for only $7,400 vs. buying the common stock outright, where you would have had to shell out approximately $42,540.

Then on Wednesday, the day before Dow Chemical's earnings, the stock traded as high as $43.95 intraday. Obviously, if you had been reading my columns, you would have sold your June $35 calls that day, and locked up your profit -- anywhere from $1,000 to $1,900 on a $7,400 investment in one day !

Then, on Friday, between the profit taking and the operators on Wall Street , I got to buy back the same June $35s Dow calls for around the same price I recommended them on Tuesday! With deep-in-the-money calls, you can take advantage of the price swings in short time horizons by taking advantage of the volatility. Buy on weakness and sell on strength!

Before I get to this week's pick, I would like to thank CNBC for the opportunity to "get in the box" with Ted David, Liz Clayman and my good friend and colleague at TheStreet.com, Richard Suttmeier.

This Dude's Getting a Dell

As a reminder -- or for those new to the column -- we are looking for great companies that have been oversold.