My pick this week is Alcoa ( AA), the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, which recently announced quarterly revenue of nearly $8 billion, and EPS of 85 cents. The EPS figure represents staggering quarterly year-over-year earnings growth of 60%.Let me give you one better: Alcoa announced net income for the first half of 2006 (at $1.35 billion) that was higher than full-year results for every year in the company's history except fiscal 2000. The in-the-money call we are going to use is the October $25.00 strike, for only $6.20. Not only do we get an opportunity to control 1,000 shares of a great company, we also have until the third Friday of October, and we are only paying 41 cents of time premium (or extrinsic value) for that right. Recent market weakness has created a great opportunity in a world-class company that is undervalued by more than 20%, according to ValuEngine, one of the tools I use when evaluating a stock. Just five days ago, Alcoa traded at $34.00; the stock recently traded at $30.60. By using my low-risk, high-reward strategy, we will pay about $6,200 for the right to control the same 1,000 shares, vs. $30,600 (based on recent prices) if we were to buy 1,000 shares of Alcoa common stock. Remember, we are not in this business to buy and hold -- that's not our game plan. We buy and sell at $1,000 profit. But just in case our original game plan doesn't go according to the playbook, we give ourselves plenty of time before our in-the-money call option expires. My job is to put all of you in the best possible position to succeed, which is why I try to keep the premium less than a dollar, and allow plenty of time before expiration -- just in case the market goes cold, like it has been for quite a while now. Now you're protected. This leads me to strongly recommend taking a look at adding to our position in Newell Rubbermaid ( NWL) at $4.30, exactly 2 points below our original cost of $6.30, for the December $20 strike. The December $20 in-the-money call closed Friday at $4.80; if you were to get filled at $4.30, you would cut your cost by a dollar to $5.30, still going all the way out until December. Once again, by using in-the-money calls as opposed to putting up all our cash to buy common, we don't have to panic; we are in control. If we want to buy another 10 in-the-money calls for Newell at $4.30, we still have only $10,600 at risk to control 2,000 shares, vs. about $50,000 if we bought 2,000 shares of the common stock. It's been tough lately, but buying deep-in-the-money calls is a strategy that can be effective no matter the market condition. That is why, at the end of each month, I will be writing an extra column, a scorecard, so we can see where we are at. Believe it!