"Deep in-the-money calls." Those five words are turning out to be quite profitable for those who've followed my weekly low-risk, high-reward disciplined strategy. In fact, I am


by the excitement and happiness all of you have communicated to me through your emails.

One of the great things about using deep-in-the-money calls is that you will find yourself buying and selling the same stock numerous times. I say that because my recommendation this week is a repeat:

Dow Chemical

(DOW) - Get Report

, which I do own. I will always put my money where my mouth is, believe it!

Dow Chemical tested its 52-week low Friday at $40.18; the support was there, as Dow bounced right back and closed at $40.60. We are going to go all the way out to September, using $35 as our strike price, which settled Friday at $6.50. This means we are only paying 90 cents in premium for one of the best chemical/basic material companies in the world.

Dow Chemical serves customers in approximately 175 countries and in various markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction. The company has 156 manufacturing sites in 37 countries and supplies approximately 3,200 products.

This particular in-the-money call is about as good an opportunity as it gets, which is why you might want to pay more than $6.50, because I am guessing you will have to: Monday morning the $35 calls were trading at $7 with a bid/ask of $6.70/$6.90. I would have no trouble at all buying this September Dow $35 call for as much as $6.90.

My feeling is that Dow sold off last week because it was the end of the quarter and "the operators" had to do a little window dressing. That window dressing gives us the opportunity to capitalize on exactly what we are looking for each week: Great companies trading at, or near, their low. I can help find the correct stocks, but the rest is up to you, meaning: Take your profits!

Speaking of which, if you followed my advice on

Nabors Industries

(NBR) - Get Report

, you had a great opportunity to

ring the register

on the June $60 calls, which traded as high as $14.40 on Thursday, as I noted in


TheStreet Recommends

Columnist Conversation.

As I wrote on

Feb. 27 : "I recognize it is difficult to just sit and watch a stock drop. But if a stock drops enough, I will recommend you buy the same calls, but for a much lower price. Nabors is a perfect example."

I had

originally recommended the Nabors calls two weeks prior at $14.50. In the subsequent article I "strongly recommended" readers who bought the June $60 calls at $14.50 buy at around $10, which would have brought your average cost down to $12.25.

I took a lot of heat for those calls from some emailers but this Nabors trade proves again the power of my deep-in-the-money calls strategy, and how all the people fretting over Nabors' weakness last month were missing the big picture.

Immovable Force vs. Irresistible Object

Speaking of the big picture, two goliaths, hoping they will be the one still standing when the clock reads 0:00, will compete tonight. Both possess a rabid fan base, loyalists who will go to virtually any extreme to support the cause.

Both possess an incredibly gifted group of strategists that develop a game plan specifically tailored to the opponent. Invariably, the most carefully designed game plan fails to account for a particular nuance, such that an improbable split-second decision by an individual determines the eventual outcome of the battle.

The old


"win or lose, you live to see another day," is often true, but may not be so in this case. For we are not merely talking about the NCAA men's college basketball championship between Florida and UCLA. Rather, we are referring to the epic head- to-head confrontation between the NCAA championship and "24," the weekly Fox drama.

Forty minutes with a 35-second shot clock plus a game clock that also stops for whistles, timeouts, and a half-time break vs. 60 minutes of a running clock that does not stop even for commercials. Both provide gut-wrenching drama with explosive and unpredictable conclusions. The major difference being that the explosions during the NCAA championship are figurative, while the explosions in "24" are literal (albeit fictional).

Which explosions will prevail? Who will be left standing as the clock winds down to 0:00? Heretofore, basketball aficionados had little competition to sway them from viewing their treasured championship game. However, "24," with its fanatical following, is a formidable foe. Moreover, as usual, Jack Bauer, the protagonist in "24," is in grave danger. Will he "live to play another day?"

Tonight many of us will have to make a difficult choice. Perhaps Tivo will help make the choice easier. Regardless, we will undoubtedly be in-the-money.


Life is a journey, enjoy the ride!

At the time of publication, Dykstra was long Dow calls, although holdings can change at any time.

Nicknamed "Nails" for his tough style of play during his Major League Baseball career, Lenny Dykstra was an integral member of the powerful Mets of the mid-1980s, including the world champion 1986 squad, and the Phillies in the early 1990s.

Today, Dykstra manages his own stock portfolio and serves as president of several of his privately held companies, including car washes; a partnership with Castrol in "Team Dykstra" Quick Lube Centers; a state-of-the-art ConocoPhillips fueling facility; a real estate development company; and a new venture to develop several "I Sold It on eBay" stores throughout high-demographic areas of Southern California.