Dykstra: Call Comcast

Editor's Note: This column marks the return of Lenny Dykstra's popular options column to TheStreet.com. We're pleased to have Lenny back. Please let us know what you think.

Some things never change.

The operators on Wall Street are still playing the same games. They run the stocks up so everybody gets comfortable and follows their lead, then, when enough other people have put their money behind that move, they start selling.

As I said, some things never change. And another thing that hasn't changed is my belief in the value of trading deep-in-the-money calls in strong companies. Today I'm writing about one stock that shows the operators at work and the opportunity in these deep-in-the-money calls: ComcastCMCSA.

On Feb. 1, the cable company reported fourth-quarter and full-year 2006 earnings, which CEO Brian Roberts described as "simply our best year ever." Then the company went on to say that it expects even stronger results in 2007. That report led the operators to slap shares of Comcast down throughout the day, and the stock ultimately closed at $42.92, down more than $1 from the intraday high.

Today, Comcast is trading around $42.29, and I expect it should hold above the Jan. 3 low of $41.84 and stabilize around its 50-day simple moving average at $42.64. From there I believe the stock will head north quickly, toward $43.75.

This leads me to today's deep in-the-money call idea. Buy 10 Comcast July $35 calls (CCQGG) for $8.60, or better.