So the market suddenly decides that risk lives.

Rough week, though today's bounce will blunt the pain for bulls heading into another weekend in which we're sure to see more M&A activity. So be it.

Here's what I'm spinning my gears around this weekend:

• Even after the recent dislocated crashing in its markets, China's still up 250% in the last two years, 45% so far this year (chart appears lower in column).

  Now I'm not sure if that sucker's about to blow itself into an even sicker bubble or if it's about to crash. But I think it's a pretty safe bet that the Chinese market is going to be wildly volatile for the foreseeable future with a binary outcome over the next year and a half into and out of the Olympics.

  I'm working on how best to play that extreme setup, and thinking out-of-the-money calls and out-of-the-money puts on the Chinese indices are probably the best way to do it. You'll lose 100% of at least one of those option bets, but have you ever seen a bubbled market flatline for a year and a half? You have to figure one half of that bet's sure to pay off. (Search for discussion of China on stockpickr.com.)