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

The stock has been pummeled since its earnings report on Friday, but now the September calls look right.
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In basketball and hockey, it's crunch time, as players in both sports face a grueling second seasons in order to crown a lone champion. The Atlanta Hawks and Denver Nuggets are going to the NBA's big dance, while the Golden State Warriors are heading home. The NBA playoff lineup is set and its time to let the cream rise to the top. Mediocre teams can ride a hot streak all the way to the top, while juggernauts can get bounced in the first round if they are not on their game.

The bottom line is that one mistake can cost a team its entire season. It happens almost every year where one pivotal play changes everything. In playoff sports, teams have very little time to rebound from losses and turn things around.

In the stock market, things don't necessarily operate that way. Just because a stock is down, doesn't mean its out, and often it's quite the opposite.

For example, investors continued to take in bad news on Monday as the sting from

General Electric's

(GE) - Get Report

missed quarterly numbers continued to hurt and

Wachovia

(WB) - Get Report

doled out some disappointment of its own. The bank announced a larger-than-expected first quarter loss of $350 million. It also said it cut its dividend.

Last week, (GE) said its first quarter earnings fell by 6%. The bellwether rarely misses its numbers and many on the street were shocked at just how far off the firm was from its target. Friday alone the stock lost about 13% of its value. That represents a staggering $47 billion dollars of its market cap. If you stop and think for a moment, and realize how much money that really is, it is mind boggling. On Monday, the stock closed a hair above its 52-week low of $31.65, and well off its high of $42.15 during the last 12 months.

GE may be feeling some pain, but it's a team worth backing. The stock has taken an absolute beating as of late, and today, I am getting behind them.

This is where people get rich. GE is a quality company, and it can only fall so far. I think we've found a bottom, and that's why I am placing an order to buy 10 DITM calls, going all the way out to the September $25.00 strike (GEIE) for $7.50, or better, and ride the stock to a $1,000 victory.

Always Remember: Life is a journey, enjoy the ride!

Long GE

Know What You Own

: GE operates in the conglomerates industry, and some of the other stocks in its field include

Koninklijke Philips Electronics

(PHG) - Get Report

and

Siemens

(SI) - Get Report

. These stocks closed at $36.31 and $107.75, respectively. For more on the value of knowing what you own, visit TheStreet.com's

Investing A-to-Z

section.

At the time of publication, Dykstra was long GE.

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."