Lenny Dykstra
Thank you for your very kind email; it is very rewarding to know that my DITM calls strategy columns have been a useful learning tool for you.
The question you ask is a common reader misconception -- I am not able to purchase DITM calls below market costs. I must wait for the option order to fill, just like everyone else. You mention Morgan Stanley: On Aug. 24, I placed my order for 10 contracts of the January $55s with a limit order of $10.30 or better. This order was not filled until Aug. 28. Waiting for orders to open is a lot like waiting for the right pitch, or "working the count." If you play smart and remain patient, you can get on base, on your own terms, and put yourself in scoring position. Hi Lenny: I have followed you column since you started writing over a year ago. I have not tried any of your strategies yet though, because I am still getting behind the idea. Mostly I read your column to learn about new companies out there; I am trying to learn as many as possible for my investing. You really don't give the readers much of a reason to buy; basically you find blue chips, and throw out that they have no debt and huge revenue. Also, most other reporters and analysts on TheStreet.com have at least a chart to back up their research, so the readers can see the moving averages, since basically you are a technician. Do you have any idea about the math behind options? It is very complex. I have never read you talk about any Greek terms that are involved in the pricing of these options. Also, your Stat Book shows you have made money, but you have thrown a huge amount of capital at your strategy to make this happen. Very few readers have this kind of capital. Then again, I could go half of what you say and get half the profit, but by the time I double down, I have no capital left, and am left undiversified. It also seems your strategy doesn't work, because you basically double and triple down on every stock. So your 9k cost about doubles for one trade. On another note, all of your emails on Fridays always give you praise -- why not include some bad emails? Most other writers do this, especially on sports Web site-related mailbags. I'm also curious how much knowledge you have? How much of the work is by your broker? My last request is, please stop talking about the Players Club; you put it in at the end of about every column. You don't give updates of what is going on with the Players Club, who is a member, how much money is in it, how it is investing -- some more details would be nice. This email seems kind of harsh, but I think of it as my constructive criticism. I am a fan and read every column you put out and usually enjoy them. I think your column could be better, and isn't that the goal in life, to get better? -- Lucas Lucas, All my reader responses are important to me, the good, the bad and the ugly. Emails for the column are selected each week solely on the basis of whether they can be used as a tool to teach my readers more about my DITM calls strategy. On to the points raised in your email. 1.) My DITM calls strategy gives readers many solid reasons to buy; it should be enough that the success rate to date on my column picks is irrefutable and unprecedented. What more do you require?
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