Dykstra: How to Keep This Rally Alive

Its forward price-to-earnings (PE) ratio is 16.45; the return on equity (ROE) is 22.61% and it has plenty of money left after it pays its bills to throw in the "kitty" with free cash flow of about $60 million. Mine Safety just broke through its 21-day moving average at $41.35. I think we are in the sweet spot here. It's going higher!

By the way, remember what I said last week: If you don't want to drop $41,000 for 1000 shares, buy a deep-in-the-money call, because there is minimal premium to pay. For example, you can buy 10 contracts with a Dec. 30 call for somewhere around $12,500. In other words, you will control 1000 shares of Mine Safety all the way until the third Friday in December, with virtually no premium for approximately $12,500.

That is the beauty of options -- the ability to leverage your position. But beware, options move fast and if you are not on top of your game, options can exact some significant pain!

Batting Second: Boston Scientific (BSX Quote), which closed Monday at $25.04. In my opinion, this could be one of the most undervalued stocks on the New York Stock Exchange. I'm not just telling you this because it's "Boston" and my good friend, Curt Schilling, pitches for the Red Sox. No, this is more about the "Scientific" part.

Boston Scientific manufactures minimally invasive medical devices used in interventional cardiology, radiology and other medical applications. The stock is trading at a forward PE of 12, and Boston Scientific's return on equity is almost 30%. Are you ready to talk about cash flow? How about almost $2 billion in cash flow from operations and free cash flow of $655 million?