Dykstra: Flex Some Muscle With Hercules

You may not have expected to see me today on TheStreet.com. In baseball parlance, we would call this the "change up." I'm going to give a go at writing every trading day, and with that, my portfolio will appear on Wednesdays instead of Thursdays.

So, let's get right down to business by looking at how my picks have fared; examining the value of the deep-in-the-money strategy; and finally, my pick for today.

While last week was tumultuous for the market, we regained some momentum with several of our picks this week. United Technologies (UTX Quote)(UTX) quickly hit pay dirt; we closed our August $55 (UTX) in-the-money calls with a $1,000 gain.

On Monday, Fastenal (FAST Quote) and Peabody Energy (BTU Quote) came flying out of the gates and followed through Tuesday, so we did not get filled with either order. Stay patient, and let them come in. Please, don't chase these picks; the prices are placed at certain levels for a reason.

We gained some nice ground this week as Comcast (CMCSA Quote), BEA Systems (BEAS Quote), General Electronic (GE Quote), Johnson & Johnson (JNJ Quote) and XM Satellite (XMSR Quote) pushed upward since last week's Stat Book.

Checking the Box Score
Position (In the money calls)	Column Date	Purchase Price	Average Purchase Price	Option Price/GTC SELL Order	Notes
Comcast (CMCSA) July $35	Feb. 7	$8.60
Comcast (CMCSA) July $35	Feb. 12.	$7.00
Comcast (CMCSA) July $35	Feb. 28	$3.30
Combined			$4.57	$5.57
General Electric (GE) September $30	Feb. 14	$6.30	$6.30	$7.30
Halliburton (HAL) July $22.50	Feb. 20	$7.80	$7.80	$8.80	GTC Filled, $1,000 WIN
Altria (MO) June $75	Feb. 23	$10.50
Altria (MO) June $75	Feb. 28	$9.20
Combined			$9.85	$10.85	GTC Filled, $2,000 WIN
Amgen (AMGN) July $55	Feb. 26	$12.70
Amgen (AMGN) July $55	Feb. 28	$11.20
Amgen (AMGN) July $55	12-Mar	$7.30
40 combined calls			$9.63	$10.70
Anadarko Petroleum (APC) August $30	Feb. 28	$10.50	$10.50	$11.50	GTC Filled, $1,000 WIN
BEA Systems (BEAS) September $10	2-Mar	$2.45	$2.45	$3.45
Peabody Energy (BTU) September $30	5-Mar	$9.90	$9.90	$10.90	GTC Filled, $1,000 WIN
Peabody Energy (BTU) September $30	19-Mar
Fastenal (FAST) August $25	19-Mar
BP (BP) July $50	20-Mar	$10.50
United Technologies (UTX) Aug $55	15-Mar	$10.40	$10.40	$11.40	GTC Filled, $1,000 WIN
Hercules Offshore (HERO) July $20	21-Mar
Source: Notes: All positions are 10 calls, except for the March 12 Amgen calls, which is 20 calls. Comcast: Split 3:2 on Feb. 21, strike price is now $23.375. The cost basis for the first 20 calls is now $5.20. Bought 10 more on Feb. 28 at $3.30. Altria: Second purchase was after column on Feb. 28. Closed out on March 7 for a $2,000 gain. Amgen: Second purchase was after column on Feb. 28

This provides yet another opportunity to reiterate our strategy with deep-in-the-money calls. Although many people trade options for instant gratification, believing that they are going to hit it out of the park, we prefer to find opportunities that minimize risk and lock in profit.