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Dykstra: Harvest Profit With ADM Calls

The ag company's March calls should yield a nice return.

Today we are going to play "best of breed" in conglomerates, and the winner is Archer Daniels Midland (ADM) - Get Report.

ADM is a world leader in the production of soy meal and oil, corn for ethanol and sweeteners, wheat for bakery products and cocoa for a number of chocolate products. The company also makes specialty food ingredients and specialty feed ingredients. The Decatur, Ill.-based company has over 27,000 employees, more than 240 processing plants and net sales of $44 billion for the fiscal year ended June 30, 2007.

ADM is truly the "supermarket to the world" and is my preferred play on ethanol. The stock is rated a buy according to ValuEngine with fair value at $38.00. Last week, the stock moved above its 200-day simple moving average at $34.50 and held that level amid Monday's weakness, closing at $34.91.

To take advantage of this under-priced behemoth, I will place a limit order at $5.90 for 10 March 30 calls (ADMCF).

Game of Life

In our lives, there are games. Some see life itself as a game, but within this huge game of life there are games within games. The teenage girl discusses for hours what to type in a text message to the boy she likes in order to avoid being too pushy, and to maintain the hard-to-get attitude. College graduates prepare questions and answers for job interviews, thinking of every possible response to a given statement, in order to seem qualified yet simultaneously humble.

There are no predetermined rules or guidelines to the field of play. There are simply players. These players have all the power, and they themselves make the rules by which they play.

Often these games leave the answers to life quite ambiguous, giving players little insight into what to say or how to act. Sometimes, however, life is quite simple, and the rules of the game are almost irrelevant.

Aric Egmont of Cambridge, Mass., knows how he feels when it comes to his love for his new fiancee, Jennie Bass. Playing emotional games is unnecessary, as both players feel similarly, creating an equal playing field, something found very rarely in life. Nonetheless, the notion of a game still persists. Aric enlisted the help of the workers at

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to create a crossword puzzle as a means of asking the love of his life to be his wife.

The puzzle was entitled "Popping the Question," and when Jennie filled in the names of her best friend and sister, she didn't think much of it. Clue No. 111-across read "generic proposal," and the answer was "Will you marry me?" Just as Jennie pondered the solution to the clue, Aric got on one knee and awaited her answer. For Jennie, this was certainly a game worth playing.

In present-day society, we are calculating individuals, constantly anticipating the next move or response of a situation. We act intentionally with an estimated response in mind. We act with our minds and not with our hearts. Certainly, acting purely on emotion can be impulsive, and that is not always the best-projected motion. However, ruling out spontaneity is also not the most favorable action. Living life as a completely rational individual gets boring.

The Players Club understands the demands and pressures that professional athletes experience in this game of life. By guaranteeing recurring cash flow, we play the role of the calculating player, thereby allowing professional athletes to be more spontaneous and less anticipatory of their next move. This by no means represents a strategy of absolute impulsiveness and irrationality but rather a lifestyle of feeling, rather than constantly thinking. Live with your heart.

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, and is featured regularly on CNBC and other cable news shows. Lenny was selected as OverTime Magazine's 2006-2007 "Entrepreneur of the Year."