Dykstra: Owning October

Editor's note: Lenny Dykstra will explain his deep-in-the-money call options (now 78-0 for the year) at TheStreet.com Investment Conference on Saturday, Oct. 25. Limited seating. Act now.

October is when the stars shine brightest. It is the time when good players become great players and when others who are role players step up. It is a time for great baseball and for winners.

It is also a time for goats, players who make a mistake at the worst possible time and cost their team a game or even a series. There have been plenty of goats in the market this month as well.

Nails on the Numbers

Anyone who is breathing knows the craziness we have all endured. The wild point swings in the major indices, the fear-mongers, the panic-selling!

Since the beginning of October, we have seen some highs, but for the most part we have seen mostly lows in the market. Oct. 1 saw a high of 11,022.06, the apex of the month. On the 10th, the Dow dropped to 7,773.71. Obviously it has been a rocky road, but if you looked at my results, it wouldn't seem that way.

I improved my record to 78-0 and crossed the $200,000 win total on Friday.

I have had eight wins in October with my Nails on the Numbers newsletter, and it is only the 21st. I had eight wins for June, 10 in September and 11 in May. I'm on pace to have a solid month, even while others have cut and run. Many have sold their positions for a loss and are now sitting on the sidelines. However, as they say with lotto, you've got to be in it to win it. And I've been winning because my system works.

In addition to the wins, I have seven open positions, meaning I have a good chance of taking more winners to the bank this month. Those picks still in play have required me to average down in order to better position myself for wins. When the market was in a freefall, I was able to buy more contracts of these options at bargain prices.

But in today's column, I want to show you the power of my system to win when the market is downright horrific. I have $13,700 in wins this month alone. And, of my eight victories, seven of them are from picks I made this month. That means that my new picks are bringing in rapid victories. In fact, my Oct. 13 pick is the only one made this month that is still in play.

Now onto some of the wins. On Friday, I won twice, once with Deere ( DE) and the other with Halliburton ( HAL). I bought Deere March $30 calls (DECF). After only two days, I was ringing the register to the tune of $2,100. My win was more than $1,000 because the stock price fell rather quickly after my pick and I added 10 more contracts on Thursday, bringing my average cost down to $11.50. On Friday, the option shot up well past my goal of $12.50 and brought me home a winner.

With Halliburton, I took home the victory after only a few hours. I had my order filled at $8.70 and later that day the price went up to my good till canceled sell price of $9.70.

The Deere pick was also a great win for another reason: It pushed me over my goal of $200,000. I like to think I have realistic expectations. However, some people thought that hitting that mark was just a pipe dream, especially when the markets went mad. People have been telling me my entire life that I can't do this or that. I like nothing better than to prove my critics wrong.

Those who have believed in the system and in themselves have benefited by standing tall when others have run for the hills. Now, I am still waiting on some substantial positions to come through. I expect them to do so.

Other wins that have already crossed the finish line this month include Microsoft ( MSFT), Cisco ( CSCO), Texas Instruments ( TXN), Chesapeake Energy ( CHK), The Shaw Group ( SGR) and Pfizer ( PFE).

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

Nobody ever made a dime by panicking, says Jim Cramer. Moneymaking opportunities exist despite the market turmoil. So where's a market master like Cramer putting his money these days? Check out his personal portfolio at Action Alerts PLUS. Take a free trial now.

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

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