Publish date:

Dykstra's Deep-in-the-Money Call: Apollo

The stock has fallen a long way but is worth the risk.

All across the NBA playoffs and the NHL's quest for the Stanley Cup, teams are taking care of business, much like I expect to do with today's pick.

The Los Angeles Lakers brought their brooms to the party earlier than expected, as they swept the Denver Nuggets right out of the first round of the playoffs. Elsewhere on the hardwood, the Orlando Magic advanced to the next round with a 4-1 series win over the Toronto Raptors, while Hornets, Spurs, Jazz and Cavaliers all took a commanding 3-1 series lead.

On the pond, the Dallas Stars, Detroit Redwings, and Pittsburgh Penguins all have jumped out to a quick 2-0 series lead in the second round of the NHL playoffs. Their hard work, attention to detail and ability to exploit opportunities are helping these teams get closer to their ultimate goals.

However, the league playoffs were in stark contrast to yesterday's market, which didn't have momentum in either direction. The

TST Recommends

Inside Eli Lilly's Surging Stock Price
Play

Lilly Gets FDA Breakthrough Status for Alzheimer's Drug

Eli Lilly received FDA breakthrough status for its donanemab Alzheimer's drug, speeding the agency's review of the product. The shares are higher.

Bed Bath & Beyond is putting some stores to sleep.
Play

Bed Bath & Beyond Leaps on Bank of America Upgrade, Fading 'Meme' Interest

BofA analyst Curtis Nagle says Bed Bath & Beyond shares are trading closer to their pre 'meme mania' levels, and represent good retail sector value.

Dow

and

S&P

finished the session a sliver below where they started, while the

Nasdaq

eked out a narrow victory. Many investors were likely hesitant to make any big bets ahead of the

Fed's

two-day meeting, which starts today. The Fed is generally expected to slice the fed funds target rate, which currently stands at 2.25%, by 25 basis points.

All these factors could impact the playing field. However, one of the best ways to put yourself in a position for a win is to get behind a winner.

Today, I'm hoping to light things up with

Apollo

(APOL)

. I picked Apollo in a

column

I wrote for

TheStreet.com

in September of last year. However, the order was not filled within one week and was canceled. As a reminder, if I place an order and it isn't filled within a week, I cancel it. And, if I stray from this system, I will let you know.

As for Apollo, it provides educational programs at the high school, college and graduate school levels. Its subsidiaries include the University of Phoenix and the College for Financial Planning. Although the company has had a rough go of it on the earnings front recently, it has plenty of positives to point to. I like the firm's operating cash flow of $704 million and its revenue growth.

Don't get me wrong, Apollo is not a perfect company. It has its flaws, just like many others. However, I believe it is a good company that is undervalued at the moment. The stock closed down 94 cents to $47.25 yesterday. To put that in perspective, its 52-week range is $37.92-$81.68. The stock has fallen a long way, but is up a bit since its bottom. I think Apollo is worth the risk.

That's why I am placing a limit order to buy 10 DITM (deep-in-the-money) calls going all the way out until November, using the $30.00 strike price (OAQKF) at $18.40 or better. Don't forget to place your sell order $1.00 higher than your fill price so you can cash in on your $1,000 victory.

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."