Before we get to this week's pick, let me point out how we finished July. My July 31 pick, Maxim Integrated Products (MXIM) - Get Report, hit our $1,000 profit target on Friday.

In response to Maxim's earnings release, the November $22.50 strike, which cost us $7.30, jumped higher and triggered our good-till-canceled (GTC) limit order, set at $8.30. This occurred


because we placed the GTC limit order directly after we bought the November $22.50 calls for $7.30 on July 31.

Remember, we are not in this business to buy and hold. We buy and sell at a $1,000 profit, which we ensure by setting a GTC sell order $1 above our purchase price. But just in case our original game plan doesn't go according to the playbook, we give ourselves plenty of time before our in-the-money call option expires. That is the beauty of the strategy; you can get a "quick hit," but it's not mandatory for success because time is on your side.

This week, we are targeting the


(CSCO) - Get Report

January $12.50 deep-in-the-money calls, which will cost us $5.10 at the most. The symbol for this particular option is CYQ AV.

This could be the best risk-reward profile I have seen in a long, long time. It is amazing to me how hated this stock is.

Check these numbers out: Cisco has a forward P/E of 14.37, return on equity at a solid 23.06%, revenue of $27.08 billion, total cash of $18.18 billion, and free cash flow at $11.57 billion. (The final number represents the amount of money the company has left after it has have paid all its bills! There is $11.57 billion in free cash flow? What am I missing here?)

I want somebody to tell me how this monster of a company can be trading at $17 and change?

Cisco reports its quarterly results after the close on Tuesday. It will report a solid number, as it always does. This is arguably one of the strongest companies in the world, but its stock price resembles the complete opposite! In closing, just remember: You could greatly increase the odds of making money if you use this winning strategy. Believe it!

The Game of Life

One week removed from the nonwaiver trade deadline, and some teams are already reaping the benefits from their transactions. Bobby Abreu had a solid first week in the famed Yankee pinstripes while Cory Lidle had an excellent initial outing in a Yankee victory. Greg Maddux pitched seven innings of no-hit ball, which resulted in a Dodgers win, in the midst of a nine-game winning steak.

The divisional standings remain essentially the same, with the exception of the N.L. Central, where the Cardinals' recent swoon has allowed the Brewers and Astros to at least dream of a divisional title. The Mets and Tigers still appear to be the class of their respective leagues. However, once you get into the postseason, anything can happen.

As I noted last week, a urine sample taken from bicyclist Floyd Landis allegedly showed high levels of testosterone. The results of the split sample allegedly confirmed the results of the first sample; hence, Landis was suspended from Phonak, his cycling team; will be stripped of his Tour de France win; and faces a two-year ban from U.S. cycling. Landis vows to prove his innocence through an appeals process. Regardless of how this situation eventually gets settled, it represents yet another black eye for cycling, as well as the world of sports in general.

Over the weekend, in Canton, Ohio, the Pro Football Hall of Fame inducted six new members. John Madden, perhaps better known as a broadcaster (and certainly for the video game that bears his name), was inducted for his achievements as a Super Bowl-winning coach with the Oakland Raiders. Rayfield Wright, an offensive tackle on the Tom Landry-led Dallas Cowboys, was a symbol of sustained excellence, who tasted Super Bowl champagne as well. Troy Aikman, a later-era Cowboy, guided the Cowboys to three Super Bowl wins in four years along with his fellow "triplets," Emmit Smith and Michael Irvin.

Similarly, Harry Carson, a superb, highly intelligent middle linebacker on the Bill Parcells-led New York Giants, played for a Super Bowl champion, alongside Lawrence Taylor, and started the now-obligatory Gatorade dousing of the head coach, after the 1986 Super Bowl. Warren Moon never won a Super Bowl, but he had a stellar career, initially in the Canadian Football League, and ultimately with the Houston Oilers, where in his NFL career, he passed for nearly 50,000 yards.

Unfortunately, the final inductee was unable to participate in the festivities. Reggie White, The Minister of Defense, tragically passed away on Dec. 26, 2004, from a cardiac arrhythmia at the age of 43. A huge man at over 300 pounds, White was an ominous presence for opposing teams, combining enormous strength with incredible speed. Arguably, he was the greatest defensive end that ever played the game. The likes of him may never be seen again. He was beloved in Philadelphia, as well as Green Bay, where he helped restore the famous Packer legacy by reclaiming Super Bowl glory. Although the man is gone, his legacy continues to sing loudly.

Lastly, I would like to congratulate Chase Utley on his recent 35-game hitting streak, which ended on Saturday against the Mets in New York. El Duque and a few left-handed relievers, in addition to a terrific play by Jose Valentin to rob him of a hit in the 7th inning, stopped Utley. Utley is a scrappy, left-handed hitting second baseman who plays the game the way it is supposed to be played. In short, he is a gamer.

Sounds vaguely familiar to a guy who used to play center field for the Mets and the Phillies; a scrappy, left-handed hitter, who like Utley, was not particularly fond of a clean uniform. Nonetheless, Chase Utley is my deep-in-the-money call this week for his chase of one of the most hallowed records in all of sports, the 56-game hitting streak of the Yankee Clipper. In these times of tainted records, "Where have you gone, Joe DiMaggio?"


Life is a journey, enjoy the ride!

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.