Dykstra: Amgen Win

Patience was rewarded as this play came through at Thursday's open.
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The Amgen (AMGN) - Get Report July $55 (YAAGK) trade, which I first suggested in February and then made four additional buys of 70 contracts, closed out at this morning's open, well above its good-till-canceled sale price of $8.28.

The order to sell 80 contracts was filled at $9.70, for a profit of $19,360. This success clearly illustrates the power of using deep-in-the-money calls, which allows one not to panic and stay disciplined by buying at the correct levels.

The

move this morning came after the company said that Aranesp, its anemia drug, was not contributing to the deaths of patients in a phase III lung cancer trial.

At the time of publication, Dykstra had no positions in stocks mentioned.

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.