Dykstra: Amgen Update

These calls have reached a level where it's time to buy again.
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The opportunity in Amgen (AMGN) - Get Report today underscores the power of in-the-money calls.

Anyone long the Amgen July 55s might do well to add to their position today with the stock trading at $57.55. When stocks fall to new buy levels, especially when four months remain until expiration, it is time to buy more deep-in-the-money calls. So I am going to buy 20 July 55s at a limit order of $5.20. I'm currently long 40 July 55s at an average of $9.63, so this is a great opportunity to lower my cost basis in this strong company.

The next level where I will add to our position will be at support at $56.20, which is the low set back in April 2005.

At the time of publication, Dykstra was long AMGN.

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.