Lenny Lenny Lenny...you've been a baaad boy. One too many double downs? "He's been writing bad checks all over town," one source said. The private-equity firm Index Investors filed foreclosure papers March 11 on Dykstra's sprawling Thousand Oaks estate, which he purchased from hockey legend Wayne Gretzky, records show. Washington Mutual then filed its own notice of default on his $12 million mortgage on March 18. Meanwhile, Dykstra's Gulfstream II was impounded in Cleveland on Feb. 12 after a creditor said the ex-slugger failed to pay $228,000 for interior renovations to it. The work mainly involved the installation of a state-of-the-art entertainment system. The former center fielder also is targeted in a dozen lawsuits by ex-employees and creditors who say they've been stiffed by him. But Crammer really believes in you! Birds of a feather?
His problem is being stuck in baseball-land... where hitting for a high average, even if all you do is scatter singles around, is a great accomplishment. Now, imagine if the batter is executed every time he fouls out to the catcher. All of a sudden, it's a different ball game.
IF he had doubled down on INTC like he did on DOX (where he bought double his position at 25-30c, with a few weeks to go before expiration), he actually would have been profitable, and likely exited, his terrible investment.
I'm probably way off, but IMO, I like DITM options vs. the underlying. If I buy a contract with a high enough delta, i can participate in (almost) the same gains as I would if I bought but shares themselves, for significantly less risk. Yes, my 100% investment goes to 0, but had I bought shares, I would have lost the difference between what I bought and what I sold anyways. I never intended to keep the shares that long anyway. So I wouldn't go long on any position I'm not comfortable losing 100% anyway.