Since the Phillies passed the Mets for the NL East title, I guess almost anything is possible. And in the markets, even with the news that Citigroup ( C) took a huge hit in subprime, the broader markets plowed ahead.Following the Fed's rate cut, this market cannot be stopped. Broad strength brought the Dow Jones Industrial Average and the S&P 500 to record levels and deep-in-the-money call premiums to increasingly higher levels. In such conditions, I seek opportunities to capitalize on the extreme fluctuations of the markets. Electronic Data Systems ( EDS) is a great example of an overly trampled stock. The market tends to exaggerate its extremes, and stocks reach higher highs and lower lows than fair-market value would dictate. Electric Data Systems provides business-to-business services for a variety of industries including manufacturing, health care and energy. The stock presently trades with a price/earnings-to-growth ratio (PEG) of 0.65. When a company boasts a PEG ratio below 1, investors should look for the chance to invest cheaply in rapid growth. Also, the company recently announced an early-retirement program. In the short term, this will increase costs; however, it will provide a considerable boost for the company's bottom line over the next few years. In order to be well positioned for a potential bounce in EDS, I will place a limit order to buy 10 March 17.50 calls (EDSCT) for $5.00 or better. If the order fills, I will be in control of 1,000 shares of EDS common stock, which closed at $22.10 on Monday, all the way until the third Friday of March.