Dykstra's Deep-in-the-Money Call: Apollo

Today, I'm hoping to light things up with Apollo(APOL Quote). I picked Apollo in a column I wrote for TheStreet.com in September of last year. However, the order was not filled within one week and was canceled. As a reminder, if I place an order and it isn't filled within a week, I cancel it. And, if I stray from this system, I will let you know.

As for Apollo, it provides educational programs at the high school, college and graduate school levels. Its subsidiaries include the University of Phoenix and the College for Financial Planning. Although the company has had a rough go of it on the earnings front recently, it has plenty of positives to point to. I like the firm's operating cash flow of $704 million and its revenue growth.

Don't get me wrong, Apollo is not a perfect company. It has its flaws, just like many others. However, I believe it is a good company that is undervalued at the moment. The stock closed down 94 cents to $47.25 yesterday. To put that in perspective, its 52-week range is $37.92-$81.68. The stock has fallen a long way, but is up a bit since its bottom. I think Apollo is worth the risk.

That's why I am placing a limit order to buy 10 DITM (deep-in-the-money) calls going all the way out until November, using the $30.00 strike price (OAQKF) at $18.40 or better. Don't forget to place your sell order $1.00 higher than your fill price so you can cash in on your $1,000 victory.

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