Dykstra: Lubrizol Greases Up an Options Play

The calls on the chemical giant are poised to pay off.
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Lubrizol (LZ) , today's deep-in-the-money stock pick today, is a great company that's flying under the radar.

This mid-size specialty chemical company makes specialty chemicals and materials for various markets and end-use applications, specializing in ingredients and additives for personal care products and pharmaceuticals, including plastics technology, as well as performance coatings in the form of specialty resins and additives.

This company is "firing on all cylinders right now," says

Ken Fisher

, who, in my opinion, is one of the top five money managers in the world. I still have the Forbes column he wrote back in 2002 advising everybody to get out of tech. It always pays to piggyback on investing greats, and a big name investor in this stock is Warren Lichtenstein via his

Steel Partners fund


The Wickliffe, Ohio-based company has manufacturing facilities in 20 countries and 6,800 employees worldwide, as well as sales and technical offices around the world. I, like Ken Fisher, expect Lubrizol to announce a 25% increase in earnings when the company announces its fiscal third-quarter earnings.

Shares of Lubrizol have been consolidating after reaching an all-time high of $69.89 on June 14. I expect the stock to hold its 50-day simple moving average at $63.39 and bounce back toward that high. That's why I'm going to place an order to buy 10 December 55 (LZLK) DITM calls with a limit order at $10.90, or better, good-till-cancel.

Game of Life

Apparently, the Athletics were the remedy for whatever was ailing the Mets.

In a dramatic turnaround from their miserable play of the past two weeks, the Mets swept the Athletics over the weekend to re-establish a reasonably comfortable three-game lead over the Phillies in the NL East.

The Brewers have been hot lately, winning five straight before losing on a bases loaded walk in the 11th inning yesterday. They enjoy a 7 ½ game lead over the Cubs, who swept their cross-town rivals, the White Sox, thereby leaving White Sox manager, Ozzie Guillen, bewildered as to what to do next to turn his team's fortunes around. In a battle of division leaders, as well as pitching aces, Josh Beckett and the Red Sox bested Jake Peavy and the Padres.

With the win, Beckett became the first 11-game winner in the majors. With the loss, the Padres are now tied for second in the NL West with the Dodgers, one game behind the Diamondbacks.

Meanwhile, the Yankees met the Giants in San Francisco over the weekend, bringing together the soon to be most prolific home run hitter of all time, Barry Bonds, and his heir apparent, Alex Rodriguez. Neither disappointed, as Bonds moved within seven homers of breaking Hank Aaron's career record, and A-Rod continues to lead the majors with 28 homers this year and 77 RBI. The Giants took two out of three to drop the Yankees 11 ½ games behind the Red Sox in the AL East.

The Tigers, bolstered by the return of Kenny Rogers, are on a 7-game win streak, which has allowed them to claim a two-game lead over the Indians in the AL Central. The Angels, who remain right on the heels of the Red Sox for the best record in the majors, continue to enjoy a comfortable lead over the Athletics and Mariners in the AL West.

Ken Griffey, Jr., who catapulted to superstar status in Seattle, made a triumphant return as a member of the Reds. Junior received a wonderful ovation from the fans and provided them with a nice parting gift, as he hit two homers yesterday, in the getaway game. This gives Griffey 584 for his career, as he surpassed Mark McGwire for seventh place on the all-time list. Another prolific home run hitter, Frank Thomas, The Big Hurt, now has 499 career homers.

Feisty Braves manager, Bobby Cox, tied the ignominious record of John McGraw on Saturday, when he was ejected from a game for the 131st time. Finally, the world of baseball was saddened by the death of Rod Beck, from unknown causes on Saturday in Phoenix, Arizona. Beck, a dominant closer, with his trademark Fu Manchu, had 286 career saves. Our prayers and thoughts go out to the Beck family.

In Omaha, Nebraska, the Beavers of Oregon State defeated the Tar Heels of North Carolina to claim their second consecutive NCAA baseball championship. Now, several of the players who participated in the College World Series will embark on their professional careers.

The NHL held its draft, and history was made when the first two picks in the draft were Americans. Hopefully, they were not the only two Americans that were aware of that fact. Across the pond, our British ancestors will again hope for a miracle, a British champion, as the fortnight of Wimbledon begins today.

Winning back to back NCAA championships in baseball is remarkable. The Players Club recognizes the exhilaration of winning a collegiate championship. Nonetheless, collegiate success dos not, by any means, guarantee success on the professional level. By guaranteeing recurring cash flow, through our strategic partner, The Players Club endeavors to provide young players with a vehicle to ensure that their collegiate careers were truly a stepping stone to successful futures.

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

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.