October brings some of the year's most exciting times, both on the baseball diamond and in the stock market.
In October baseball, we have seen epic performances and catastrophic failures. The stock market has proven to be no different. The beginning of the fourth quarter can set the stage for extraordinary bull runs, yet October has also seen some of the biggest crashes in market history.
The bulls seem mostly in control now, but we will have to remain prudent and cautious in moving forward. With that in mind, I would like to return to a recent deep-in-the-money success story:
. I first
wrote about Unit on Sept. 7. In four quick days I scored a $1,000 DITM win.
As so often happens after a win, Unit again represents a strong deep-in-the-money (DITM) call play.
Its strong fundamentals persist. Furthermore, it has strong technical support at the $48 level, which is where it closed Wednesday night. This stock has declined for long enough -- it's well off its 52-week high of $65.65 -- and is ready to break out.
That said, I will place a limit order at a price of $9.90, or better, to buy 10 March 40 (UNTCH) deep in-the-money calls. If the limit order gets filled, I will be in control of 1,000 shares of UNT common stock for more than five months (if I need that long).
Please understand: I use DITM calls to put me in position to trade stocks, targeting quality companies that have been oversold and beaten down. This is simply a "Stock Replacement Plan" that allows me to participate in higher-priced stocks. Best of all, my DITM calls strategy acts as a defense against the No. 1 sin in the stock world: margin.
Game of Life
The last playoff participant was not determined until the wee hours of Tuesday morning, when, in a one game playoff to determine the National League wild card winner, the Colorado Rockies triumphed over the San Diego Padres 9-8 in 13 innings. The Rockies cannot be accused of backing into the playoffs, as they won 14 of their last 15 games.
Moreover, they roughed up Jake Peavey, the likely NL Cy Young Award winner, and scored three runs off Trevor Hoffman, who has more than 500 career saves, in the 13th inning, to walk off Coors field, and into the playoffs. Ironically, the Padres were one out from clinching a playoff berth on Sunday, against the Brewers, when Tony Gwynn, Jr., the son of Hall of Famer, Tony Gwynn, Mr. Padre himself, singled home the tying run for the Brewers.
Subsequently, the Padres lost in extra innings, thereby necessitating Monday's playoff against the Rockies.
Maintaining their hot streak, the Rockies went into Philadelphia, and proceeded to take Game One, 4-2 yesterday, behind Jeff Francis. In the middle game of the tripleheader, the Red Sox shutout the Angels 4-0, as Josh Beckett pitched a complete game. In the nightcap, the Diamondbacks beat the Cubs, behind the superb pitching of Brandon Webb.
The Yankees and Indians start their series today in Cleveland.
The National Hockey League season began this weekend on a frozen pond across the pond, as Anaheim and Los Angeles split two games in London. The remainder of the teams will start their seasons in the next few days.
In college football, LSU has replaced USC atop the college football polls, after USC barely beat Washington on Saturday. Both teams have some formidable challenges upcoming; hence, their spots are far from secure.
The world of sports lost an Olympic fixture on Monday, when Al Oerter died of heart failure in Fort Myers, Florida. Oerter won gold medals in the discus, in the 1956, 1960, 1964, and 1968 Olympic Games. Oerter, along with Carl Lewis (long jump), are the only athletes in history to claim gold in the same event in four consecutive Olympics.
Ethiopia's Haile Gebrselassie is another Olympian, with an incredible resume. He won Olympic gold in 1996 and 2000 in the 10,000 meters, in addition to setting multiple world records in the 5000 meters, as well as the 10,000 meters. In 1999, he won the 1500 meter World Indoor championship, essentially a sprint for him.
At 34 years old, Gebrselassie unequivocally established himself as one of the greatest distance runners in history with his world record of 2:04:25, in the Berlin marathon, when he shaved 29 seconds off the previous mark established by Kenya's Paul Tergat in 2003. His remarkable range, from 1500 meters to the marathon, is virtually unparalleled in track history.
The Players Club recognizes and appreciates Gebrselassie's ability to adapt to different distances, and master them all. Running alone for the last six miles of the Berlin marathon, he was amazingly able to generate a negative split, whereby his second half-marathon was 1:01:57, which was 32 seconds better than the 1:02:29, he ran in the first half-marathon.
By guaranteeing recurring cash flow, through our strategic partner, The Players Club endeavors to provide balanced splits throughout the marathon of our members' lives.
Always remember: Life is a journey, enjoy the ride!
At the time of publication, Dykstra had no positions in stocks mentioned.
Nicknamed 'Nails' for his tough style of play, Lenny is a former Major League Baseball player for the 1986 World Champions, New York Mets and the 1993 National League Champions, Philadelphia Phillies. A three time All-Star as a ballplayer, Lenny now serves as president for several privately held businesses in Southern California. He is the founder of The Players Club; it has been his desire to give back to the sport that gave him early successes in life by teaching athletes how to invest and protect their incomes. He currently manages his own portfolio and writes an investment strategy column for TheStreet.com, and is featured regularly on CNBC and other cable news shows. Lenny was selected as OverTime Magazine's 2006-2007 "Entrepreneur of the Year."