Dykstra: Bank on Battered BofA

The markets followed Tuesday's heavy negativity with an all-out roller-coaster ride. To this point, I have shied away from the financial sector. However, I believe now is the time to take a look at deep-in-the-money calls in Bank of America(BAC Quote). Out of all the financials, this behemoth of a bank gives investors the greatest value, in addition to the greatest upside now.

Bank of America, along with Citigroup(C Quote) and other financials, have experienced a heavy selloff in the wake of large subprime losses. Both stocks have been in a free-fall since early October, and one outcome of the losses has been that Bank of America is now our nation's largest bank by market capitalization.

Although the majority of the news remains negative, the country will not let these large banks fail. They play such an important role in the stability of our economy that the Federal Reserve Bank will take all steps necessary to ensure these companies stay stable. ...