Dykstra: Your Questions Answered

The best way to stay in step with me is to stay as close to my trades as possible so that my thinking makes sense for your trades as well. However, if you keep your average purchase price in step with mine, or keep yours even better, you should be fine.

Just keep in mind that my next buy levels are reviewed daily. It is important to always keep tabs on them.

Q: In your newsletter, do you give detailed instructions on how to work the intricacies of options?

A: Yes, of course I do. I try to keep my system simple, so I don't get bogged down in a ton of technical terms. There is no need. I try and explain my thinking and point to the data I'm reviewing. I tell readers when I am buying an option and when I sold it. I tell them when I am adding to a position.

My newsletter goes into detail about each pick, while some of my past columns, particularly those from late June and early July, are good reads for brushing up on the basics.

Q: What's the upside of your Deep in the Money (DITM) technique and what's the downside?

A: The upside is that my strategy that has led me to 87 straight victories this year. I get to trade big companies at the fraction of the cost since I am trading so deep-in-the-money. This allows me flexibility to be in many different positions. The only downside is that the options have expiration dates. Once the date is reached, the option is worthless. So, I must achieve my win before that expiration date. However, I like to pick options that have expiration dates that are very far out -- most of my picks lately have been for options that expire in January 2010 or later. I have just two that are set to expire before that -- one in January 2009 and the other in April 2009.