Dykstra: Fuel Up on Methanex Calls

Before I discuss today's pick, I'd like to point out that my deep-in-the-money (DITM) calls on Jabil Circuit(JBL Quote) closed for a nice win on Friday. I had 20 December 20 contracts open at an average price of $3.43, so when the option opened on Friday at $4.50, my good-till-canceled sell order was filled at that price and banked a $2,140 win in just 21 days.

If I had purchased the stock outright, I would have needed to spend about $43,700, but by buying DITM calls, I spent only $8,850 and cashed in for a beautiful 24% gain in 21 days. Try doing that at your local bank with standard market interest rates.

It should be noted that 10,169 contracts traded on Friday, when the option price reached our prescribed sell target, as compared with Monday when only 210 contracts were traded, and Thursday when 450 of the December 20s were traded.

Now on to today's pick: Methanex(MEOH Quote), the world's largest producer, marketer and supplier of methanol to markets in North America, Asia Pacific, Europe and Latin America. ...