Dykstra: Double Play on Gambling, Chocolate

Today the Fed will make a key decision with major implications for the economy and the stock market. While it's difficult to project how the market will react, I believe it's important to focus on areas of strength.

Casinos such as Wynn ( WYNN) and MGM Mirage ( MGM) have had extraordinary growth this year, with growth in the sector largely aided by international expansions.

Gambling continues to prosper worldwide, yet International Gaming ( IGT), the world's largest producer and marketer of slot machines and other electronic gaming devices, has been down on the year, and the stock closed at $43.50 Tuesday.

I wrote about this company in May and ultimately scored a deep-in-the-money (DITM) win. Out of the 10 most popular electronic gambling games and most profitable electronic poker games, International Gaming produces and sells nine.

With a large international presence, International Gaming should benefit from its superior technology and a favorable exchange rate.

Casinos and gambling are growing rapidly worldwide. Additionally, the company's products become cheaper on the world market as the dollar's value continues to decline; this should help solidify International Gaming as the world's most popular electronic game producer.

This stock gives you a great opportunity to capitalize on the fast growth and expansion in the casino industry. Regardless of which way the U.S. economy heads over the coming months, gambling should continue to prosper worldwide. The industry has withstood countless recessions and enjoyed success throughout varying degrees of economic turmoil.

To put my chips in the game, I will place a limit order to buy 10 April 35 calls (IGXDG) for $9.50 or better.

The following recommendation is in addition to the IGT play today. I am adding 100 DITM calls, or an investment of $6,000, in Hershey ( HSY), which closed at $42.50 Tuesday.

They're giving these options away, and I can cut my average price in half with this move. This will put me in position to gain much needed ground if the stock moves up a couple more points. My plan is to purchase 100 November 45 contracts for $6,000, using a limit order of 60 cents or better.

Now, as I do every Wednesday, it is time for me to "show you the money."

I take great pride in the Stat Book; after all, this is how we keep score. As you will see, I don't like to lose. I believe that there are only winners and losers in life -- there's nothing in the middle.