Latest Update As most of you know, Lenny Dykstra is a former Major League Baseball player. He is a three time All Star and a World Series champion. He has been a firm believer of Deep in the Money Calls for many years now.
His option picking service is offered through TheStreet.com Latest Update and is called Nails on the Numbers. This option picking service debuted in late March of 2008 and through late November 2008 claimed to have an 86-0 success rate. This is the only service that I have not subscribed to, but felt compelled to since some friends asked me about it.
I have followed his picks since back in the day when he would come on Jim Cramer's radio show (when Jim had a radio show) once a week to talk about his picks using Deep in the Money Calls and the option's expiration was mid- term.
I kept a tally of his picks and they never seemed to pan out back then. This was my motive for not even bothering to subscribe for the trial to his new service now.
His reasoning for picking any deep in the money call was he was controlling a solid company for a fraction of the monetary commitment involved in owning the stock. He didn't talk about historical volatility or any big words like that. It was just, "I like this company..."
That reasoning is fine if you are in a bull market, but he isn't using any other basis for his picks except he likes this company or that company.
I find his recent track record suspicious since the market has been in a major down trend in 2008 and he is just using calls. His alleged gain from late March to late November 2008 with deep in the money calls was $223,000.00
You may have seen him from time to time on the Fox business block on Saturday mornings. I recall one show where the rest of the panel seemed to make fun of him, but he appeared to not care or grasp the fact that some were teasing him. Toby Smith said maybe he got hit in the head a few too many times with foul balls.
My take is this is an option service to stay away from unless you are the type that likes to see car wrecks. It's strictly minor leagues (sorry I couldn't help myself).