Dykstra: Tax Losses and JPMorgan

Greetings, everyone, from the South of France. Actually, I am in New York on business and will be returning home later in the week.

Today, I would like to bring you up to date with the Stat Book.

My deep-in-the-money calls strategy has an unsurpassed success rate, but no investment strategy is 100% successful.

That is why I am on record stating that this business model, when followed correctly, will bring at least a 90% success rate, if one plays by the rules. Nothing is bulletproof. There will always be companies that defy the odds, the technical indicators and the fundamental strength that I rely upon.

Investment losses are part of the reality when trading, but losses can be used at tax time, and a loss in the Stat Book can mean a lower tax bill this coming April.

Meaning: All of us who took a hit on Hershey(HSY Quote) now have earned a tax credit. But keep in mind that the rules for capital gains and losses are strict and watched closely by Uncle Sam. You should consult your tax adviser for tax-loss strategies that can be implemented to offset much of your annual gains.

Once again, I stress: Please consult with your tax adviser before implementing any type of tax strategy.

And now, as promised, it is time to go to the Stat Book and see the results of my deep-in-the-money calls since Feb. 7, 2007. This also updates the open positions with new buy levels and GTC (good-till-canceled) sell orders on the remaining open positions.

For those of you looking for a trade, I suggest you look very closely at JPMorgan(JPM Quote). JPMorgan has been thrown in with all the subprime bozos in a case of guilt by association. If you want to be long a great company that has had its stock unfairly taken apart, then buy JPMorgan common stock and ride it for at least 5 more points, which would take you to the $47 range. Lock and load!

Always remember: Life is a journey; enjoy the ride!