Dykstra: Take These Calls to Bank of America

The Komag(KOMG Quote) trade continues to frustrate, just escaping my grasp. Today I want to make the following buy: 30 September 25s (QKXIE) at $1.90 or better.

There are almost four months until expiration, and the risk-to-reward makes sense. As I said yesterday, with almost 30% of the shares sold short on a float of only 22.70 million shares, this stock can make a 5-point run in the blink of an eye.

Now for today.

The strong selloff in China overnight will lead to a lower opening this morning, but I believe most traders feel it's not a key event for the U.S. market. The market is likely to place more weight on the Federal Reserve's minutes from its previous interest rate policy meeting, which will be released later today. ...