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Dykstra: Here's an Option Play for You, Bud

These Anheuser-Busch September calls should sate investors, but like a long at-bat, patience is the key.

This deep in-the-money call is for you.

Hovering near five-year lows,



, in my opinion, is as close as you're going to get to being the perfect candidate if you're looking for a play that qualifies for investing in the "low-risk, high-reward" strategy of buying deep in-the-money calls.

I believe this one, in particular, to be good for a few reasons.

First, we are looking at a rock-solid company with a strong balance sheet. Anheuser-Busch has a forward price-to-earnings ratio that comes in at 15.98, and the return on equity for the trailing 12 months is a staggering 61.19%, according to Yahoo! Finance. To top it off, the company's levered free cash flow figure starts with the same letter as the stock symbol, "B", as in $1.30 billion.

Second, the expiration date isn't until the third Friday of September; that's almost a full Major League baseball season, approximately six months.

Third, for all of that, we are paying less than $1 in premium.

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The BUD September $35, deep in-the-money call closed last Friday at $7.00. That equals 78 cents in premium. So $7.00 is the price where we put our good till cancel limit buy order in. Do not chase this because it seems so cheap -- stay disciplined.

For an example of the strategy, consider

Eli Lilly


, which I discussed

last week. In that column, I suggested buying the Eli Lilly October $45 call with a GTC order at $11.50. That order was filled on March 1 at $11.50, and I bought more that same day at $11.10, before selling it all for a nice profit on the same day.

I didn't chase it. I let it come in. The premium is so minimal in cases like this that you might want to think about adding a few more calls than you usually buy. It's up to you if you do, but please, do not chase the options. Remember, my patience with Eli Lilly allowed me to buy back into the name on Friday, and I'm still long those.

At the time of publication, Dykstra was long LLY calls.

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.