Dykstra: Wal-Mart Options Go on Discount - TheStreet

Dykstra: Wal-Mart Options Go on Discount

The retailer's December options look bountiful.
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In 1962, Sam Walton and his wife, Helen, the founders of Wal-Mart (WMT) - Get Report, hit the road, traveling the country with their "discount retailing" concept, which they believed was the way of the future. Today, Wal-Mart is a retailing juggernaut that spans the world.

The company operates some 1,200 Discount Stores, 1,980 Supercenters, 567 Sam's Clubs and 100 "Neighborhood Markets" in the U.S. Sam has come a long way, wouldn't you agree?

What hasn't come a long way is its stock price,. which basically has gone nowhere in the past two years. The stock closed Friday at $48.11.

This past weekend, I was doing homework on

Stockpickr

, and Wal-Mart appears in several interesting value-orientedStockpickr portfolios, including the portfolio of the mutual fund thatWarren Buffett recommended to his investors when he shut his own funddown:

Ruane Cuniff

. It's also in the

portfolio ofMarkel, which is often touted as the "next BerkshireHathaway. Also,

check out

Stockpickr's Best Retailers portfolio, which includes

JC Penny

,

Target

,

Advance Auto Parts

and other retail names.

Remember, the big boys are out in the Hamptons sipping on Pina Coladas as they put their game plan together. As long as you stick with your game plan, you will continue to be a winning player. At the end of the day, this is a serious business, one that will take your money if you do not do your homework and understand the rules of engagement.

I have found a loophole in the system, and I show the results of my strategy

every Wednesday. Keep it simple, stay with limit orders and GTC sell orders, and then lock in a profit.

In the latest opportunity to employ this strategy, we are going to buy 10 contracts (meaning: we are going to control 1,000 shares of the common stock because one contract is equivalent to 100 shares) of the December 42.50 DITM calls (WMTLV) at $6.90 or better.

The Game of Life

The Mets went into Philly for a four-game series over the weekend, seeking to re-establish their supremacy in the NL East. Taking advantage of a Phillies pitching staff decimated by injuries, the Mets, facing three rookie pitchers with a grand total of four career starts amongst them, and they won three of four.

The Brewers, despite losing two of three to the Cubs, maintain a comfortable margin in the NL Central. The Dodgers and Padres are virtually deadlocked for first in the NL West, with the Padres ½ game behind.

Meanwhile, the Red Sox continue to enjoy a double-digit lead in the AL East, with the Yankees headed south. The Indians have created a little breathing room over the Tigers in the AL Central, while the Twins have moved within striking distance. Quietly, the Angels have assumed the best record in the majors, and lead the surging Mariners, who have won eight straight, by four games in the AL West.

The starting lineups, the pitching staffs and the reserves have been selected for the MLB's All Star Game, which is scheduled for next Tuesday in San Francisco. Along with the three Mets in the starting lineup, Ken Griffey, Jr., the leading vote getter, and Barry Bonds will be patrolling the outfield as starters.

A testament to the true international flavor of baseball is the fact that the starting AL line-up includes only one player from the U.S., Derek Jeter.

A few personal milestones were realized in the past three or four days. Frank Thomas, The Big Hurt, hit his 500th career homer, and Craig Biggio, an Astro forever, recorded his 3000th career hit. Both possess Hall of Fame credentials, with Biggio seemingly a sure thing. As far as seasonal achievements are concerned, C.C. Sabathia became the first 12 game winner in the majors. A-Rod continues to lead the majors in homers, while Prince Fielder leads the National League.

The NBA draft was held on June 28, 2007, and to nobody's surprise, Greg Oden was the first pick by the Portland Trail Blazers. Kevin Durant was selected second by the Seattle Sonics, who also traded Ray Allen to the Celtics for Delonte West, Wally Szczerbiak and the 5th pick in the draft.

With that pick, the Sonics selected Jeff Green from Georgetown, thereby establishing a dynamic duo for the future. Yi Jianlian, from China, the foreign gem in this year's draft, was chosen 6th, by the Milwaukee Bucks; however, he has yet to report, as his handlers are concerned about the scarcity of the Asian community in the metropolitan Milwaukee area.

Moreover, the free agency period began yesterday in the NBA, although no signings are permitted before July 11, 2007. Despite a great deal of talk, Kobe Bryant and Kevin Garnett remain with the Lakers and Timberwolves, respectively.

The NHL's free agency period began yesterday with the big signing being Daniel Briere by the Philadelphia Flyers for $52 million. However, the Rangers made the biggest splash when they landed Scott Gomez and Chris Drury.

As is often the case, rain has dominated the proceedings at Wimbledon. Unfortunately, as has been the case lately, the American men have been eliminated early, with only Andy Roddick, the No. 3 seed, advancing to the fourth round.

On the women's side, the Williams sisters, Venus and Serena, have advanced, along with Laura Granville, who upset former Wimbledon Champion, Martina Hingis. As expected, Roger Federer and Rafael Nadal appear headed for a showdown in the men's finals.

The Players Club recognizes past champions and champions to be. Furthermore, we realize the often fleeting nature of maintaining a championship caliber of play. Therefore, by guaranteeing recurring cash flow, through our strategic partner, The Players Club endeavors to protect a championship lifestyle long after one's ability to win championships wanes.

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

At the time of publication, Dykstra was long WMT.

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.