Great streaks? UCLA won 88 straight basketball games from 1971 to 1974. Eric Gagne converted 84 straight saves from 2002 to 2004. The Pats went 19-0 in 2007, I have the t-shirt to prove it.
Oh wait a sec., scratch that last one.
But can any match up to this from Lenny Dykstra?
I may have a perfect record with 70 wins and zero losses this season, and I may make it look very easy at times. The truth is that I put in a lot of hard work so that it is as easy as possible for my readers. In the end, though, it's worth it. The system works -- in both up and down markets -- and the proof is in the pudding, as they say.
Yes kids, work hard, and only book your winners, and you too can go 70-0.
What's his secret? Mastery of elementary school math.
......my strategy calls for buying deep-in-the-money calls. I usually pay a premium of $1 or less to purchase these options contracts. Sometimes it's a little over a dollar, but it doesn't happen all that often. That's a main part of my system and it's part of my ground rules.
I figure out the basic premium by adding together the strike price of the option I am purchasing plus the amount I am going to pay to purchase each contract. From that total, I subtract the price the stock closed at the previous day. When that calculation is done, I should have a premium of less than $1.
Note to subscibers: Calculations may take 4-6 weeks for delivery.
I hate to break it, but "dollars over intrinsic value" is not an intelligent criteria for options selection. Suppose a stock is trading $80, and the April 70 calls trade $2 over, it would not meet Lenny's criteria. But now let's say the stock splits. BINGO, the $35 calls are now only a buck over. Now we can buy them, even though it's the same exact call it was pre-split.
Not to mention you can also get calls closer to intrinsic at all times by going closer in time, or lower in strike. But of course each of those makes the calls more and more like simply buying stock. Which is of course verboten in Lenny's system.
But who am I to make suggestions, I've made plenty of bad calls this year.
