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Dykstra: Heal Thyself With Amdocs Options

It's been hammered in the selloff, but January calls offer hope.

The bulk of second-quarter earnings have come in, but a heavyweight is still out there: results from

Cisco

(CSCO) - Get Cisco Systems, Inc. Report

.

Cisco faces a very tough task when it reports tomorrow: It is so good and makes so much money that its earnings almost have to be perfect with its stock trading near a 52-week high. CEO John Chambers is definitely what this market needs -- he always seems to have the right things to say.

Today's pick also comes from the tech sector, and it was a deep-in-the-money (DITM) call winner earlier in the year.

Amdocs

(DOX) - Get Amdocs Limited Report

provides the software products and services to the communications industry worldwide that enable telephone companies to handle customer service, orders and billing. In the past 12 months it has raked in $2.77 billion in revenue.

On July 18, Amdocs announced a rise in quarterly profit as sales of its business software nearly doubled. Net income in the fiscal third quarter rose to $88.2 million from $85.6 million, and revenue rose 14%.

Amdocs holds the leadership position in its field because of a growing product portfolio and strong business momentum. Factors contributing to this are its ability to win many of the large transformation deals in North America as well as globally, and its combination of innovative software and services.

Amdocs retains its dominant market position for the second year, and it does more than twice as much business in the telecommunications market as the runner-up. The company has over 16,000 employees and serves customers in more than 50 countries around the world.

The company's financials are impressive. As noted above, revenue was $2.77 billion in 2006. Its forward

P/E is 14.88, and the return on equity is 15.16%. Cash in the bank is $1.15 billion, with a minuscule debt-to-equity ratio of only 0.18.

Yet amid all of the beautiful numbers, glowing praise, acknowledgments for leadership and control of market share, the stock has dropped along with the rest of the market. Once the panic recedes and investors rally around value, this one will move quickly.

Taking advantage of the excellent prices, I will buy 10 January 30 DITM calls (DOXAF) for $6.80 or better. The order, as always, is good till canceled.

Tomorrow I will be writing about the

TheStreet Recommends

Bank of America

(BAC) - Get Bank of America Corp Report

August 42.50 (BACHV) deep-in-the-money calls, providing detailed instructions for my DITM calls strategy as I prepare to roll the August $42.50 calls into the November $40.00 calls (BACKH).

Game of Life

The weekend saw the achievement of three major milestones in Major League Baseball. Barry Bonds equaled Henry Aaron's career home run record when he belted number 755 in San Diego on Saturday night, with Commissioner Bud Selig in attendance. It is fitting that he tied the record against the Padres, in that he has hit more career homers against San Diego than against any other team.

He is now poised to break the record this week in San Francisco, in front of the adoring hometown fans.

Meanwhile, Alex Rodriguez, who many believe will supplant Bonds as the career home run leader in the next six to eight years, became the youngest player to hit 500 homers when he reached that milestone on Saturday night in the Bronx. A-Rod, at 32 years and eight days, beat Jimmie Foxx to 500 by just short of a year.

Then Tom Glavine, a consummate gentleman, gained his 300th career victory Sunday night against the Cubs. We may not see another 300-game winner anytime soon, if ever. Although Randy Johnson only needs 16 more victories to achieve 300 career wins, his injured back and advancing age make the likelihood of that achievement suspect at best.

With the help of Glavine's victory, the Mets remain 4 1/2 games in front of the Braves in the NL East, with the Phillies five games back. The Brewers are hanging on to a one-game lead over the Cubs in the NL Central, while the Diamondbacks enjoy a 1 1/2-game lead over the Padres in the NL West, with the Dodgers and Rockies a little farther off the pace.

Don't look now, but the Yankees, seven games behind the Red Sox in the Al East, are only one-half game out of the wild card in the American League. The Indians have a one-half game lead over the Tigers in the AL Central, with the Twins only 4 1/2 games behind. In the AL West, the Angels enjoy a 3 1/2-game lead over the Mariners.

Lorena Ochoa cemented her status as the top player in women's golf when she won her first major, the Women's British Open at St. Andrews. In men's play, Rory Sabbatini said he wanted Tiger Woods on a Sunday afternoon. Well, he got him yesterday afternoon at the World Golf Championship Bridgestone Invitational, at the famed Firestone Country Club in Akron, Ohio. Rory, you may want to be careful about what you wish for.

Tiger, in a nearly impeccable performance, shot a five-under-par, 65, in rainy conditions, to completely obliterate the field, winning by eight strokes. This is his third consecutive win in the WGC Bridgestone, and his sixth overall. Unequivocally, Sabbatini was seeing more than just the characteristic Sunday red garb of Tiger. With the victory, Tiger's confidence will be soaring as he attempts to avoid a major shutout with a win at the PGA, which commences at Southern Hills on Thursday.

On Saturday in Canton, Ohio, the NFL inducted six new members to its Hall of Fame. Offensive lineman Bruce Matthews and Gene Hickerson, cornerback Roger Wehrli, running back Thurman Thomas, wide receiver Michael Irvin and tight end Charlie Sanders were enshrined in the first NFL Hall of Fame ceremony. An emotional Sanders thanked a mother he barely ever knew, as she died when he was but two years old.

Acknowledging how many players salute their mothers on camera, Sanders, with tears in his eyes, said, "I thought it was something that was always special, and I would want to do, but couldn't. So I take this time, right here and right now, in Canton Ohio, at the Pro Football Hall of Fame, to say, hi, Mom."

The Players Club recognizes the void left by those we love, particularly when we are honored for things they helped us achieve. By guaranteeing recurring cash flow through our strategic partner, we endeavor to ensure that our members nourish their achievements, as well as remembering those who were instrumental in the journey.

Always remember: Life is a journey; enjoy the ride!

At the time of publication, Dykstra was long DOX.

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."