Dykstra: How to Work a Call

The market has been unkind recently and has humbled many stock-pickers. However, despite the pain all around, we were able to take advantage and grab a $1,000 win. I thought this would be a perfect opportunity to illustrate the power of my system and explain to you why I prefer to trade deep-in-the-money options calls as opposed to regular stock.

Last Monday, I told all subscribers to my newsletter, Nails on the Numbers, to place a deep-in-the-money call on Archer Daniels Midland(ADM).

At the time I pointed out that the stock was trading just above its 52-week low. I told them to go all the way out until December, which would allow us several months -- if necessary -- for the stock to turn around.

The order wasn't filled on Monday. However, when the market started to tank last Thursday, we got our price.

As a reminder, my picks that go unfilled stay on the board just one week. If they are not filled within that time frame, I automatically cancel the order and move my attention to another pick.

Mad About Options: Playing Blackberry

It's important for my readers -- especially those of you who are newer to trading options -- to take note. That's because if I cancel my order you will not receive further updates on that particular pick. If you leave the order open and are filled after I cancel mine, you are going to be on your own for the remainder of the trade.