This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Dykstra: Reflections and Remembrances

On America's birthday, let me take the opportunity to introduce you to a new monthly feature in which I will review my picks and my performance for each month. I recognize that many fans like to keep score; now I'm providing them a way to do so.

Remember, with my low risk/high reward strategy utilizing in-the-money call options, we insulate ourselves from the drastic market swings that the ordinary trader must endure. We accomplish this by giving ourselves a significant time frame, approximately four to six months, before our in-the-money calls expire.

That doesn't mean, however, that we can't achieve our goal, a $1,000 profit, in just a few days or weeks. This is demonstrated by my June 12 pick , the Dow Chemical (DOW - Get Report) December $30 in-the-money calls. We purchased these calls at $8.80 and they turned out to be exactly what I said they would in my column: the best risk/reward opportunity I had seen with this stock.

Faithful readers may note that I have mentioned Dow Chemical frequently in past columns. In fact, I have mentioned it in 11 columns. Trading in and out of a high-quality company like Dow Chemical when its stock falls and its in-the-money-calls are priced attractively is a great example of how I approach the market.

Remember, this is not a "buy-and-hold" operation. Our goal is all about making money. We want to reap at least a $1,000 profit after we purchase our deep in-the-money calls. To help us do that, we set a good-until-canceled (GTC) limit sell order. This way, we don't have to watch the tape every second the market is open.

We are protecting our investment -- if the stock makes a nice move and spikes up during the trading day, your order will automatically get filled because you set a GTC limit sell order -- typically 1 point above our in-the-money call price. This will allow you to capture that $1,000 gain without making a phone call or watching your computer all day.

And now, on to our other picks from June, all of which I'm still long as of this writing.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs