Lenny Dykstra: Deep-in-the-Money Calls

Updated from 8:55 a.m. EDT

Japan, I want to bring you a little state-side action with some jaw-dropping events that happened last week. The investment banks tried to shake off the historic collapse of Bear Stearns(BSC Quote), much like the New York Mets hope to do as they start the regular season in a little less than a week against the Florida Marlins.

Readers of past columns will remember the fact that I was working on The Players Club magazine, much like the Robb Report, but this is truly customized for teaching professional athletes the importance of financial independence and education. I'm happy to say that on April 1st. every professional athlete from every professional sport will have a magazine waiting in his or her locker.

Now let's talk about the stock market. Last week was quite amazing. It began like the late collapse of the 2007 New York Mets, to the hopes of the new season in Spring Training. The team was the Investment Banks. Bear Stearns was faced with bankruptcy but the U.S. Treasury and Federal Reserve put together a bargain basement buy of Bear by JPMorgan(JPM Quote) for the pittance of two bucks a share. Helping the rebound magic was the Federal Reserve decisions announced following their meeting Tuesday. The FOMC cut the federal funds rate by 75 basis points to 2.25%, and announced that they opened the Discount Window to the primary dealers in addition to commercial banks. There are 20 primary dealers and these are the investment banks that have business relationships with the New York Federal Reserve Open Market Trading Desk.

While many are still trying to figure out what happened at Bear Stearns, I'm not taking my eye off the ball. There are plenty of good investments ripe for the picking, so let's look at where we're going, not where others have been.

Delphi Financial(DFG Quote) has $30.00 printed all over it!

The stock closed Monday's trading session at $28.96 The company manages all aspects of employee absence and provides the related insurance coverage, such as long-term and short-term disability, excess and primary workers' compensation, group life, travel accident and dental. Delphi Financial's asset accumulation business emphasizes individual fixed annuity products. The company offers its products and services in all 50 states, the District of Columbia and Canada. Its two segments are group employee benefit products and asset accumulation products.

Delphi Financial's shares are trading well below their fair value. I feel very confident with this play. The stock trades at a 7.43 Forward P/E, total debt/equity is close to zero, and the company takes home close to $500,000 in free cash-flow after it has paid its bills.

For my Deep-in-the-Money call, I am going to go all the way out until October, and use the $22.50 strike price. That symbol is (DFGJX), I am going to pay $6.90 for 10 Deep-in-the-Money calls, using a limit order.

There are plenty of quality companies on sale that I will be writing about right here, twice a week -- every Tuesday and Thursday -- on TheStreet.com.

I have another piece of great news. I'm beginning a subscription newsletter on my Deep-in-the-Money calls that will be offered here at TheStreet.com. If you would like to be included on our debut issue with a free trial, please send your name and email address to [e-mail].

OK, it's time to start filling up your pockets with money; all you have to do is follow the rules and stay disciplined!

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

Know What You Own: Bear Stearns operates in the financial services industry, and some of the other stocks in its field include Goldman Sachs (GS Quote), Morgan Stanley (MS Quote), Merrill Lynch (MER Quote), Bank of America (BAC Quote) and Lehman Brothers (LEH Quote). These stocks were recently trading at ($180.08, +0.67%), ($49.40, +1.33%), ($47.76, -1.28%), ($42.16, -0.68%) and ($45.99, -1.39%) respectively. For more on the value of knowing what you own, visit TheStreet.com's Investing A-to-Z section.