Did anybody see thestreet.com now has a column by Lenny Dykstra, the ex-ball player?? He writes an article in which he makes picks using deep-in-the-money calls on mid-term expiration options. I'd love to see how his track record turns out...he averages down a lot, and usually makes his picks on fundamental factors rather than technical (generally not good when trading options in the relatively short term time frame). Interesting recipe for a blowout... http://www.thestreet.com/newsanalysis/investing/10345466.html
I've been watching him on Fox on Sunday mornings as a guest commentator on the 4 different shows, and he has polished his approach overtime. But I do agree, he does some things that would make most look at him like a rookie. But supposedly he was trained by one of the best options traders. Don't remember his name, there was a Forbes article (I think it was Forbes) that wrote about Lenny.
Yeah, I guess I'll give him a chance...but I do know he really doubled down hard on AMGN, so he's gonna need help to get outta that hole. To elaborate on the strategy, he goes long 10 in the money calls (3- 6 months away from exp., and he buys 10 regardless of the cost per contract) and then sets a limit order to close at a $1 gain (again, regardless of what the calls cost). He doesnt mention stops, but adds to his position as it goes against him. I'd be impressed if this nets a + return over a few months even...at least he's got a lot of money to play with
IMHO Lenny Dykstra should stick with baseball,at least there he was paid for a strike out! lol what a reversal of circumstance,now he is going to be the one paying for his strikeouts lol