The market has been exceptionally volatile in the past week, but yesterday's ferocious buying helped stocks regain a significant portion of their losses from last week.
In times like these, stock movement tends to be biased toward the extremes in either direction. Overall, it remains unclear which way the broader markets are truly heading. I will tell you this: "If you are not on top of your game, and aren't fully aware of what you are doing. Say goodnight!"
With the market all over the map, we will turn to the world's most diversified manufacturer of health care products and services,
Johnson & Johnson
. The stock closed Tuesday at $61.70. With more than 200 companies in 57 countries under the Johnson & Johnson umbrella, and more than 120,000 employees throughout the world, this stock will be our deep-in-the-money call.
Looking back, the drug stocks have not really participated in the bull market. Can you say correction? I believe we still have a way to go before the correction is over. There are a few drug stocks I could pick:
is trading just above $25, and
is trading at $52.23, near its 52-week low.
But the class of the pharmaceutical sector is Johnson & Johnson, and our timing couldn't be better, as the stock has not really made any kind of move yet.
We are going to buy 10 of the July $55.00 (JNJGK) deep in-the-money calls, with a limit price of $7.60.
This is an excellent example of the power and leverage we gain by using my weekly in-the-money calls strategy to control shares in one of the most respected companies in the world.
It would normally cost us $61,700 to buy 1,000 shares of JNJ. With our in-the-money calls, we pay only $7,600 to control 1,000 shares.
(By the way, I'm not the only one who's a fan of J&J -- super investor Warren Buffett also owns the stock. See what other mutual funds own the stock by
; check out Buffett's other stock holdings by
Let me be clear: This strategy is not for those of you who are in the buy-and-hold camp; that camp is closed in our world.
In fact, we are in our own camp. It's called the "We Make Money" camp.
As the clocks spring forward three weeks early this year, we will enjoy longer afternoons filled with the after-dinner treat to the local ice cream parlor (if the kids are good). It somehow always seems to be easier to get out of bed in the morning to the tune of a robin's song and the sweet aroma of freshly sprouted tulips.
The sun somehow always seems a little brighter against the reflection of the marigolds and buttercups that will soon inundate our front lawns. The trees somehow always seem a little greener, taller and more alive than they were last spring.
It seems that every season presages the next. In spring, thoughts turn to salty ocean air against your skin; summer evolves into thoughts of crunching fallen leaves beneath your feet; autumn evolves into thoughts of the first snowfall against your eyelashes, and then once more, winter evolves into spring. In hindsight, we are living each season in perpetual expectation of enjoying the next. But let's slow down for a minute.
Last week, Amillia Sonja Taylor's parents brought her home from the hospital for the first time in her life, more than four months after her birth in October. Amillia is one of the youngest premature babies known to survive in the world. Weighing in at less than 10 ounces and measuring a mere 9 inches, Amillia was born after an emergency Caesarean section only 21 weeks and 6 days into her mother's pregnancy.
She was due to remain and grow in the womb for almost double that time. Doctors gave her little chance of life. The preemie neonatal equipment at the hospital in Miami was too big for her. Doctors did not know what to expect of her vital signs as they had never treated a preemie so young who managed to survive the delivery. Ordinarily, the beginning months of a preemie's life are unpredictable.
In this case, however, the doctors were on a roller coaster with Amillia, improvising and learning as each day passed. Despite some respiratory and digestive complications Amillia faced while in the hospital, the doctors have given her a very optimistic prognosis. She has grown to 4½ pounds, still barely half the weight of a newborn baby, and is now over 15½ inches. In a recent interview, her mother, Sonja said, "She is perfect."
Amillia is called a "miracle" baby. Certainly, the doctors and nurses throughout those four months were truly lifesavers for Amillia. They adapted to each and every situation, to each and every moment, without knowing what could happen next. Beyond the inexplicable medical explanation for Amillia's survival, lies the power of life itself. Amillia's vivacity, determination, and courage to survive exemplify the unsurpassable strength of human life.
She fought every second, against all odds, just to take her next breath. Baby Amillia is incredibly lucky to have the love and support from her parents and all her loved ones, who I believe, in part, passed on to her the strength to survive. Amillia Sonja Taylor truly is a miracle baby -- a miracle baby who was given the gift of life.
While we may be fortunate enough to have achieved our lifelong goals -- whether that is to be a professional baseball player, or the head partner in a law firm, or the CEO of a successful company -- our real achievement rests far beneath our occupations. Our real achievement, which actually defines us, is being able to share each and every moment with the ones we love.
Now that I'm retired from professional baseball, I want to give something back. One of my projects now is called The Players Club, a program for professional athletes to help manage their money. It also realizes the importance of the truly important moments in life: swaying back and forth on a swing for the first time on your father's lap, watching your child sing a song at their preschool graduation, or even lying in bed doing absolutely nothing with the one you love and having it feel like the most fulfilling moment in your life.
By guaranteeing recurring cash flow through The Players Club, we hope to put financial worries beyond these athletes' concern, so they can have the gift to enjoy the moments that matter with the people that matter.
While we anticipate the arrival of warmer days, let's not jump to travel too far in time. Enjoy the chilling crispness of a snowflake, the ambrosial scent of a flower, or the warming comfort of a smile. Simply, enjoy life.
Always remember: Life is a journey. Enjoy the ride!
At the time of publication, Dykstra was long JNJ.
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.