Manny Ramirez's deal with the Dodgers Wednesday seems to have come down to deferred salary. After a great partial season with Los Angeles last year, Manny finally got the $45 million he's been seeking and that he'd turned down at least once before.

Terms of the latest two-year offer were a bit more advantageous, enabling Ramirez and the team to come to an agreement. He found a groove with the Dodgers last season, hitting .396 with 17 home runs in 53 games. No question, the Dodgers wanted him back in a bad way.

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Now, let's get to a question from a subscriber to my Nails on the Numbers newsletter about my deep-in-the-money call options trading system. My system's win record is 95-1, and I'm just getting started.

Could you expand on your methodology a bit more? For example, please explain time limits on buy orders, or the criteria you use for adding to existing positions.

As a general rule, with each recommendation I make I tell subscribers to purchase 10 contracts of a specific option at a specific price, using a limit order on price and duration. On Monday when I instructed you to buy 10 contracts of the January 2010

Cameron International


$12.50 call (YXXAV), paying $7.80 or better, I specified the call; the limit on price -- $7.80 or less; and duration -- limit your trade to automatically cancel at the end of the trading day if the order is not filled.

Similarly, when adding to open positions, readers need to understand and watch the scorecard, which is available exclusively to Nails on the Numbers subscribers. When the underlying asset -- the stock -- reaches a re-buy level as listed in the recommendations section, 10 additional contracts are recommended at this point. With this purchase, I recommend a "market order," meaning subscribers should add to the position at the going price rather than waiting for an option price recommendation.

With market orders, we do not set a limit on the price. Instead, orders will be filled at the current ask price. Please note that option prices can change quickly: If buying additional contracts at the ask price will not improve the average cost of your position, then it would not be prudent to do so.

With each re-buy, I recommend adding 10 additional contracts. If you trade in quantities of fewer or more than 10 contracts at a time, then scale your re-buy to match accordingly.

Lastly, with each open position I hold, I set an automatic good-till-cancelled sell order to close the position out when the market price of the option contracts hit my target sell price. With a GTC order, the order is left open until cancelled. Unlike the day order, this one remains open until executed or cancelled.

At any time, you can cancel the order and submit a new GTC sell order. So when you add additional contracts to an open position, it becomes necessary to adjust the GTC sell order to correspond to the new target sell price.

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Unlike picks that win quickly on the original 10 contracts, the re-buys add to the payoff when longer-term positions finally hit their targets. On Dec. 11,


(HAL) - Get Report

paid out $7,100 after 31 days in play. On Nov. 28,

Forest Labs


added $3,000 to my win column after 11 days.


(CAT) - Get Report

netted $3,100 on Nov. 24 after staying alive 10 days. And on Sept. 23,


(CCJ) - Get Report

paid me $4,100 after 14 days in play.

Re-buys helped my Sept. 19 win,

General Electric

(GE) - Get Report

, to pay out $5,750, while


(GRMN) - Get Report

paid out a cool $8,100 on re-buys after 36 days.

Lenny "Nails" Dykstra, a guy who's used to winning, consistently profits from his deep-in-the-money options calls. You can, too, with his Nails on the Numbers. Try Lenny's service free and see how it works for you. If you decide to subscribe, just one winning call will pay for a whole year!

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

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, and is featured regularly on CNBC and other cable news shows. Lenny was selected as OverTime Magazine's 2006-2007 "Entrepreneur of the Year."