>> for more "options action," check out our website and our daily segment inside "fast money." for more, my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you money. my job isn't just to entertain but to educate you and teach you. call me at 1-800-743-cnbc. or of course, tweet me @jimcramer. talk about uncertainty. with all the tensions in russia and ukraine and israel and the gaza strip we can't navigate by

earnings reports alone, even though this is the height of earning season next week. that's why the game plan starts with russia. we needed to see something this weekend that makes it clear that the russians and the united states aren't on a collision course irreversible after that tragic plain crash. we could be in the midst of a terrific rally and it might be wiped out by geopolitical events that are tough to get your arms around. i want to be clear about this. i'm not saying you should sell stocks because of ukraine tensions. i'm saying that others truly will though. yes, some financial companies have relationships particularly visa and mastercard in russia, but a small percentage overall. plus, global tensions lead to a flight to safety. always happens. which means a flight into u.s. bonds. when people buy our bonds of course interest rates go down. and when interest rates drop, the bank stocks fall too. it's just the way it works.

their earnings do better when rates are higher. russia/u.s. relations lead to a decline in the banks. and remember, the bank stocks had been the leaders going into this incident. as long as you understand the correlation, we can now return to our regularly scheduled game plan. monday morning, halliburton reports. i think you might have an opportunity to make hay on this giant oil service company. the reason? if we get more tensions over russia let's -- over the weekend, no one is going to care about what halliburton reports in the morning and i believe there will be some strong earnings. a conclusion i reached after spending a huge amount of time talking to the company. how is a key cog in the wheel of the american renaissance and plus it's become more value not less whenever oil is headed higher because of geopolitical conditions. we get angst and worry the

numbers go down and then you can buy hal at a better price. could be a bargain. after the close we have chipotle. a very tough one. i think they're doing fabulously. however, so does everyone else. one of the true his ups of the earning season is played out, if a stock has run up into the quarter, it could get hammered even in the results are fantastic. that does fit chipotle's situation. let's add another level of complexity. the restaurant and retail stocks have been among the hardest to fathom because the raw cost of food is horrendous. i open a mexican restaurant, and every bit of the food i bring into bar san miguel has gone up in price. food inflation, way past my budget. chipotle has much more bargaining power than i have. in the end, food prices are going much higher. hopefully they'll peak, but it has happened. here's my suggestion, why not wait to own chipotle? you could buy the finest quality retail chain at a discount after the quarter.

when i do believe by the way that prices will recede. we hear in netflix, a stock we profiled in our off the chart segment. i'm concerned that netflix too going into the quarter. but fox's hostile bid for time warner has made me a bull. think of it like this. fox covets time warner's hbo. netflix is the most askin to hbo of any company i follow. if netflix goes down i think it can make for terrific takeover play, especially if they got underneath $20 billion. it could soar. so how about this, compromise. put half of a position on for netflix on monday before the company reports and then i'd buy the rest if the stock has a post quarter pull back. tuesday's apple and i like everything i'm hearing about apple long term. even though i know the stock has had a marvelous 16% run to date.

i'm in total revolt about those who write and talk about apple on a daily basis. i think they're one of the more pro share management teams otlut. and plus, ibm, they acknowledged corporate leader when it comes to information worldwide, is going to sell apple products into the enterprise. yet, how do the analysts judge apple? off the iphone sales, it's insane. it's produced very little value added research. when people ask me to do about apple? own it. wednesday has two stocks, boeing and facebook. why are they problematic? because i think the long term prospects are so tremendous that i would only bother with short term concerns. however that's not how this what have you done for me market does for stocks. boeing is now among the worst

performers in 2014 which draws me to it and drew my charitable trust to it. that's where the opportunity comes in. i think that even if a company reports an amazing number you'll buy boeing for less than where it will be trading two months or maybe even two weeks from now. it says wait to see the number. facebook. i think it's like apple. you need to own it. half ahead of the quarter on wednesday and half after. i think facebook has captured the imagination of advertisers worldwide. we ask ceos how do you get new customers and they they say facebook. until the stocks that yellen called out earlier this week i think the $175 billion facebook is inexpensive. it's a big capitalization she didn't mean it. thursday, we have four of my favorites reporting, they could be buys ahead of the report. remember, by this point i think that a lot of the bad news in the world might be digested,

stocks are lower and we have a focus. first, american airlines which while only a few points off the highs remains extraordinarily cheap. this is an another stock that i recommend buying. if it heads down on worldwide tensions ahead of the quarter. we get results from ford and general motors. i think both are cheap on earnings and a lot can happen, particularly with gm which has been held back with the negative recall history. my charitable trust bought it. maybe it's a buy again. and then there's caterpillar. we heard from the united rentals, the number was spectacular. and the company indicated that non-residential construction in this country has accelerated from get this, 1% growth to 13% growth in a year. that's extraordinary. and i think it's a perfect predictor of how cater pillar could do this quarter. and now amazon. tim collins our charter's friend told us in off the chart that amazon's daily chart is among

the best in the book. the last quarter is viewed as a disappointment. that's a positive because that takes expectations lower and well that just means amazon has run into the quarter. and that's pretty good opportunities. down 10% from the high. might be worth here's my strategy buying some deep in the money call options before the quarter. finally on friday, it's a macro thing. we get the durable goods orders. we want to start to try to predict when the fed will begin to raise interest rates because i think it will happen later this year. everyone when they start going up is going to panic, except for us, right? a strong durable goods number will make it more likely that my higher rates will come true. remember, interest rates will still be very low even after three or four rate hikes and while stocks fall in the first one they tend to bounce back rather quickly. we know that geopolitical events are driving things and will color all earnings reports.

let the market come in before you do some buying. no need to be a hero. sam in georgia, please. sam. >> caller: booyah, jim, how are you doing, my brother? >> i'm doing fine. how about you, partner? >> caller: good. i want to get your opinion on gopro. >> it's like twitter when it first came out of the box. everyone got excited about it. because people felt while i like twitter, i want to own the stock. gopro is like that, but they'll have some good sales. i have to tell you that if you're a momentum player and want to speculate, gopro fits the depiction of what i like. let the market come in before you do some buying. no need to be a hero. none at all. of course, stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a

call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

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what! no service? seriously? no electricity, we're going to make our own candles, we're going to churn our own butter. oh, we lost one. can't leave a bag unattended. bank from almost anywhere with the citi mobile app. to learn more visit citi.com/easierbanking i'm jim cramer and welcome

to my world. >> one man, one mission. >> i just want to make you money. >> you need to get in the game! >> tens of thousands of miles travelled. >> this new gold rush is just getting started. it's the sound of american industry roaring back to life. >> hundreds of ceos. >> my life's story can be your life story. >> thousands of callers. >> booyah! >> millions of your e-mails and tweets. "mad money" thanks cramerica for being with us for over 2,000 episo episodes. i believe that you can do everything i do at home if you're willing to put in the time and the effort and investing. specifically actively investing in stocks, running your own portfolio rather than dumping your money with some bio and forget index fund or worse,

fleeing to bond funds particularly when we had record low interest rates. something anyone can do, as long as you can spend five hours a week doing the homework. researching the stocks. i'm condoning a couple of hours a week these days because the research is so readily available if you have a p.c. on cnbc.com, yahoo! finance or from the plain old websites of the actual companies you're thinking of buying or keeping up on. in fact, i think actively managing your own portfolio is essential. especially in the wake of the crash of 2008 which proved the uselessness of index funds that merely try to mimic the market. mimicking the returns is not enough. especially not if you're trying to get back to even. you have to do better. the only way to do that is by actively managing your own portfolio for your own tax consequences. but how do you start? that's what we're talking about tonight. like i said, this show is all about the method or methods to break for strictly -- to my madness. how do i pick stocks? tonight you get a piece of that answer.

the truth is that i have got far too many methods to ever cover all of them in one single show. but i want to give you some of the tools of my trade, and enough so that you can start to pick stocks like yours truly on your own. or do better than i am. you don't have to follow as many stocks as i do to be successful. i do follow a lot of stocks which is something that was recently tested by patriots at the barry inn which i co-own in summit along my eggs i serve on sundays, preferably poached. i do the dishes there. at the bottom it's about giving you the ultimate insider's perspective on how the market works. i'm not here to -- shop for them at whole foods what i'd like to do is empower you. that starts with me teaching you the many tricks i pick to trade them like a pro. methods that have served me for

30 years of investing, that allowed me to generate a 24% annual return after fees at the hedge fund. these skills are what refreshes this show. and guide me as i manage my own charitable trust. and another ten year labor of love where i have been able to give aware more than $1.7 million in winnings. something i'm proud of, even though that product is difficult to put out. the way i identify potential cramer names is by watching -- i can't believe they produce this for you every day, the new high list. stocks on that list, the highest of the high have something going for them. and that's especially true when the market is in business shape. so what's it tell you when a stock is on a new high list? it's part of a genuine bull market or that the company itself is -- many stocks on the new high list keep going higher.

a great bull market like we have from the bottom of 2009 any market that more than doubles from the bottom has to be considered a great bull market. even as we resist such labels, we saw that over and over again. the same stocks would hit new high after new high after new high. following them was a great way to make money. even as the bears claimed that the bull market was false and couldn't be trusted and we were playing momentum. listening to the bears is one of the greatest rallies in history, obviously the rally is more like the exception than the rule. generally speaking, things have worked out and will continue to work. i'm not saying that you can chase stocks that are hitting the highs because they'll keep going higher. that would be the ultimate in foolishness. it's true bozo the clone behavior. if you want to identify the stocks where do you start? with what would be winners with winners already. unless there's been a big sea change caused by a gigantic political shift or dramatically higher in the interest rates. looking at the present is a terrific way to start looking at

what could be the winners of the future. that's a thing about the market, not always that hard to play once you understand that there's often more continuity than change. things pretty much keep going the way they were going until something major shifts. then you have to alter your course. those tectonic course changes can be pretty radical though. that's why you have to be re-evaluating your ideas and should never dig in your heels when the facts change. two important disciplines that i stress, still holds up because it's a book about methodology. it's still regarded as indispensable even as we only got back to even and then some. you know what? when looking for stocks to invest in, when hunting for the bull markets like i do at 6:00 p.m. eastern you have to start somewhere. looking at the new high list has always been a terrific way to

begin. i don't just pluck names off the new high list, they'll keep going up. i have a lot of things, a lot negative. no -- no, anyone who sees me insane 4:15 tweets @jimcramer, i apply the same things as at the hedge fund. i rarely say trade off the new high list, but what i like to do when hunting for stocks is wait for something to pull back from the new high list. see, that's the best place to start. i like new high list pull backs. the pull back preferably at 5% down. gives you a goodloer point entry point. remember, i'm not telling you to chase momentum. you should be conscious of price. just like you want to sell on the strength. i'm throwing this in because i don't want you to look at the new high list as your shopping list. but it's a great jumping off point. okay? so it's an important one.

pouring over the new high list is a way to identify potential. i stress that word -- potential stocks to buy. you only buy stocks if you're confident they'll make a come back for substantive reasons not having to do with the market. you have do the same homework you do before buying a stock. you absolutely must have conviction. even if it's cynical conviction that it will go higher. the growth funds they always come in and support the stocks after a few down days. i know the guys, they do do that. the biggest caveat of all shopping for stocks pulling back from the highs, make sure they're pulling back for a good reason. don't go buying a home builder that's down if the interest rates go up. that could hurt their next quarter. and be certain you're dealing with a momentarily damaged stock and not dealing with a company

that's going down. if the fundamentals haven't changed, the stock hasn't fallen from grace. profit taking, or some panic in the market in general. those are the two main reasons. now more than ever thanks to the fact that stocks are trading like commodities causing huge sell-offs that make no sense or double or triple the etfs, more powerful than the stocks themselves you will see the stocks pull back for reasons that have nothing to do with the strength of their underlying businesses. those are the ones i want you to buy buy buy! but if the fundamental change is what ever made that stock attractive goes away, then that stock is no longer a sell sell sell. buy buy buy! no. don't buy. the story had to be intact or it won't help you one bit. i tend to like stocks that have pulled back 5 or 8% from the high. less than that, you're probably too early. and here's the bottom line.

look for stocks that have pulled back from new high list because of a broad market sell-off. some of the best picks have come out of this process. i hope yours do too.

a wise man once said in a mad world only the mad are sane. and nothing is more mad than the

market. yours truly is just crazy enough to know the landscape like the back of my hand. i reveal the best tricks for buying the best stocks, and methods if you will to the madness. that's right. think of me maybe as the -- how about the penn and teller of the stock market? if that resonates at all with a physique like teller than penn. i want to pull back the curtain and show you how professionals looks for stocks to buy. there's no magic, there's no hidden talent. a bunch of disciplines. disciplines that can make you mad money. you don't need to be that smart, to be completely honest. you need to know what you're doing and put in the homework. that's where cramer the sad but wise clown comes in. maybe more kind of like the less sad clown. let's move on to how to find stocks that are great buys. earlier i talked about picking stocks that pulled back from new high list because you get a cheaper entry point. i said you don't want to buy

names right off the new high list because you're paying too much for them. you can usually get a better deal if you're patient and wait for some weakness. given how volatile and downright crazy the market has become, there's few occasions when buying off the new high list is justified. but sometimes the stock is so sizzling you have to buy it wherever you can. as soon as you can. because it's not going lower any time soon. you won't find them often. but if you want to buy 100 shares of a stock and you feel like you won't get a buy back, buy 25. worst thing that happens it goes higher and you grab a quick profit and then find another stock. believe me there's always another stock to find. always another train coming to the station and leaving. >> all aboard! >> now i have one exception where it is indeed okay to buy a stock on the new high list. only time but i thought i had to give it to you.

all right? if you see insiders buying the stock when it's at a 52 week hike, that's -- high, that's a clear idea to get in. i love it when see i insiders buying at the high. it's a great sign in their confidence of the business. who knows if the business is doing well than the people running it, right? it's small and its own insufficient reason to buy a stock. a lot of times you'll catch insiders buying the tock because they want to give the impression of confidence. to create an illusion they're doing better than they are. insiders aren't stupid. they know if they're seen buying their own stocks then the market will smile upon them. we ignore insider buying because it can be flim-flam or window dressing. that's it, when you get colossal insider trading even if it's not at the high, take another look at the stock in question. it's a powerful endorsement when the insiders buy a whole lot of stock. it's really the volume of the

insider buy that declares the insincerity. we're only focused on buying at the high. there's nothing more arrogant and telling than when an insider backs up for the stock. think about it, yeah, we know we rock. our stock has been en fuego, we're so confident it will keep going higher we'll buy some shares, hand over fist, right now. we're not waiting for pull back. no, we're buying at the high. this is bankable hubris. i checked this out nine ways until sunday. they're not fools, with notable exceptions on the "mad money" wall of shame. not everyone deserves the benefit of the doubt. after the financial crisis in 2008, i know a lot of people think that all ceos are all crooks. especially those of you who got burned on the old fannie mae or lehman brothers.

if you're going to own stocks you need to be willing to extend some measure of tryst to the people who run the companies of those you own shares of. or you shouldn't buy stocks at all to be frank. if you buy a bunch of shares is a good darn reason to give the ceo the benefit of the doubt. they have some unshakable conviction about the companies or perhaps they have been contacted about potential purchase and they have spurned them. most investors aren't smart enough to wait for a pull back. insider trading means they don't think there will be a pull back. sure i want to wait for a pull back after they bought, but that's the best of all possible worlds. it doesn't happen all that often. one more method to cramer's madness, when you see a stock at a 52 high and insiders are buying you might want to buy too.

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i have to tell you something here, if you caught cramer on a good night. i'm not going home to sip that cheap scotch on my dirty linoleum floor. i apologize to dewars, i said it was linoleum of choice.

no, it's pretty good. it's me at my best. let's say i'm productive and prescient when i'm in high gear. so i'm getting so revved i'm revealing the methods to my madness. pull out your pencil, some paper. i haven't used that line in a while. start jotting things down. it could be incredibly useful. better than stock picks i'm giving you the best ways to pick stocks. i'm teaching you to invest and trade like cramer. if not to be like me, i have some emotional issues frankly. you would prefer not to emulate. like really, off track. so far, i have been giving away two of the precious secrets. actually, unlike lady gaga i play with an open hand not a poker face, allowing the subscribe es to see all the trades before they happen. better than pink, although i wouldn't mind raising a glass. i look for those pulling back from the new high list. it's a great place to start. it's a launching pad. i like that my stocks that are

around the new highs. it's as the people in the company believe that the stock has legs. it's not a fluke. if they believe, there could be good reason for us to believe. again, this alone, not enough to recommend the individual stock. these are all places to start. you still need to do the homework. check out the fundamentals, make sure you like the story before you dive in and buy. what i'm teaching tonight are really what i call tells. that's the term i use. tells. the stock might be worth earning and it's worth it to go through the boring process of reading through the transcripts. there are thousands of stocks out there and any method we can use to narrow down the ones that are attractive are methods worth having. we have talked of insider buying at the high. i don't use insider trading to see if a stock has it going or not, there's one other scenario where it makes me -- let's say really react -- it makes for an incredibly bullish tell. that's when it has a heavy short position. people out there have borrowed

shares, are now waiting for the stock to go lower. before they buy them back. return them to the bank they borrowed them from and collect between the difference they sold at first and the price they bought it back at later. you can think of a regular investor, only in reverse. we try to buy low, sell high. shorts just try -- turn that around. they want to sell high and later buy low. when a stock has a lot of shorts in it that meansther a lot of people who have serious conviction, conviction that the stock is going lower. usually lower. in fact, as i always try to tell people, it takes much more conviction to short a stock than to go long. that's wall street speak for buying a stock. when you short it it's infinite. when you're long, a stock stops losing you money when it hits zero. shorts lose money when the stocks go higher and no little. the other important note, if there's a lot of them and the stock gets some great news, we get what's called a short squeeze.

and sounds like what it is. in order to bail or close out the positions the shorts have to buy. this is called covering. when a lot of shorts cover at the same time in a panic, the stock will surge. because what you really have is a lot of people desperate to buy the stock. a lot of demand. they have to buy unless they want their years wiped out. and so many short sellers have in the last few swoons, well, they didn't cover. they didn't know when to quit. they got hurt. so where does insider buying fit into the short selling equation? you have a short with a high -- you have a stock with a high short interest. you can look that up in all the different websites. then some of the people who run the companies start to buy shares. it's almost like drawing a line in the sand for the shorts saying aha, our stock goes this low. and no lower. and this is an explosive combination that often leads to the stock squeeze. shorts are smart. in fact a lot of the time they tend to be smarter. they tend to be smarter than long term investors. but they don't know more about a business than the insiders who run it.

if a lot of people are shorting the stock and management is buying it in real -- you know, maybe even million dollars of worth, do some homework. side with the management and then ride it higher and higher true jackie wilson style as the shorts panic and push the shares higher in desperation to cover their positions or close out the shorts. similarly when it comes to the heavily short announcements, another line in the sand situation. where management is contradicting the shorts. companies often repurchase their own shares. some of them can be an outright waste of money. i teach you how to identify them in the charitable trust and a substantial new buy back in the face of the shorts is often a good reason to take a closer look at a stock. now, a note of caution here. you have to be careful in dealing with the company that's in the crosshairs of the shorts. especially when people are nervous and the market is in bad shake. the shorts can wreck the stock. even if the fundamentals of the

underlying company are fantastic. the shorts have up many more firepower than ever. i talk about this all the time on the floor of the stock exchange. the old brokers believed -- that's in part to the s.e.c. under both the democrats and the republicans looks the other way when shorts rate stocks with bogus stories, put them on the websites that are unedited and people read them. it's easy to do. stock owners no longer have the benefit of the rules. they make -- used to make it really hard to create bare rates. waiting for the higher price before you could short, that was a good rule that the government got talked into abolishing. in order to make trading quicker and more fair for the shorts. really for the brokers. it's a leading reason why so many home gamers have left the building. we established these rules in order to stop the fomenting of panic. something that happened during the great depression, but the government seems to think that panics are no longer possible.

human nature has changed. so we have to be more careful not to succumb to panic by short sellers who need the pace prices to go lower and they plant stories on the websites that people do not check before hand. they read it, oh, it's on a web side. without those predictions, without those protections the shorts were able to run wild and practically assassinate the stocks of many companies during the crash of 2008 until the generational bottom of 2009. that put the bulls back in control. but the shorts came back with aggressive negativity and at the end of the year in 2012, this time using weapons of mass destruction up like double and triple etfs. when you're dealing with a heavily shorted stock, you have to tread carifully. you can find great opportunities in stocks with the shorts of overreach and the insiders are buying. i had to warn you that the balance of power has shifted in favor of the shorts and against you the regular individual investor. that means even if the short sellers are wrong about a

company's prospect they can demolish the stock. don't underestimate the amount of money by spreading things, okay? remember, the best protection is offered from stocks that pay good give sdepds. they have to pay the dividends to the real owners that's a terrific return from those who are pernicious in the way they go about shorting. insider buying and insider interest can have heavy buy. stay with cramer. at every ford dealership, you'll find the works!

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>> announcer: lightning round is sponsored by td ameritrade. welcome back to this method to my madness episode, the crazy and most enlightening show on tv. we talk about all the tricks to pick stocks and know when to sell sell sell. all the efforts that made me a great money manager on wall street and putting together this show to help you make money. i wanted to teach you how to do

it for yourself. so far we have focused on the mow -- methods i used to pick stocks and now how to trade them. this is incredibly difficult, but it's great in trading volatile markets. i have used this term, trading around a core position. here we go. i know the rap on me. at least from my critics. i'm all about trading. i don't have advice for regular investors, i'm all about the short term. i don't know, that's entirely untrue. this show is about longer term investing, how, to put aside whatever humility i have left, i will admit i was a darn good trader. but now i can only trade for the charitable trust and this i'm a much longer term investor than in the hedge fund. i can't short sell or use options which is what i advocate you use. it pays to put trading disciplines in practice. you can buy more stocks of those you like at lower prices and

sell more when they're flying high. that's the essence of trading around a core position. trading is about profiting from short term fluctuations in the stock's price. sometimes it's a catalyst, sometimes a result of the topsy-turvy markets and all sorts of macro data. knowing how to trade makes you a better investor and trading out of core position is one of the most useful disciplines out there. especially in markets like in 2011. 2012 because of the european banks and even in the bond swoon in 2013. so what does it mean to trade around a core position? why don't we do this step by step. okay, first you need a stock. pick one that you really like. one you have got an opinion on. a bias. find a stock that you believe is going higher over the long earn term. what you're looking for is a great company with a stock that could get tossed around by market volatility but you believe should go higher if you're patient. in other words, you have to have conviction. if you were just investing and set up a position in buying in

increments, we know that buying all at once is arrogance. that would be it. let's use google, as an example because i like that stock very much. although only over the long term. for investing. because it's very volatile and getting into the quit pit falls and declines. if you want to own 100 shares of google the way to set that up is on the position to buy 25 shares, four times over a period of weeks. or even months. that would be your core position as an investor. buy it at a discount each time. i don't want you to buy it all at once. i know many of you want to, but you feel discouraged because you remember how the amateur day traders got blown out when the tech bubble burst. the key word is amateur. you home gamers can make money trading if you do it right like a professional in the old days. when commissions were higher that wasn't true. it wasn't worthwhile to trade, but that's not been the case for ages. i'm in favor of people who are disciplined traders. let's come back to the core position. we have 100 shares of google. let's say it's trading at

$1,000, a round number. every time it jumps 50 points you sell 25 shares. you shave off a little to bring in profits. once google goes up, keep going up. then you wait until something happens to knock the stock down to where you bought it. as long as the reason it's down isn't because they have had prospect damage. that shouldn't be unreasonable. stocks can get crushed by all kinds of factor. you buy it back in the same incents. let -- if google comes back -- from 1100, buy 25 shares. that if the you had sold 50, not 25, so on. you can take this winnings and buy 25 more, if it keeps going lower. you only have to sell 25 before the swoon. it may be small potatoes, but this is about adding up gains. sell 25, down where you started,

buy 25, repeat the process on the way up. over time, your profits do add up. that's what's trading around the core position is all about. a lot of people think that trading is incredibly exciting. it can be. but if you're good at trading out of the core -- it's quite boring. all you're doing is watching the stock move and on the increase or the decrease. it's something reckless and trading around this is prudent. particularly if i went up and then you have to trim something. you have to scale in or out of the positions at whatever size makes you comfortable. avoid putting yourself in a spot where you have too much on the table in case the stock gets swatted down or too little on the table to take advantage of any upside. trading on the core position is something that everyone can use. even though of you who find the notion of trading as opposed to investing to be abhorrent. you shouldn't because it's prudent capital management. if you want to take your trading to the ultimate level, i did --

i did two chapters on this very hard, i have to admit. it's in getting back to even. this is how i used options as a strategy on a tradeable position. i used to think before options action that some of the material is too sophisticated for tv. that was before me. i have to tell you on that show, the strategies that i'm using are -- they're not child's play, but very, very easy. i no longer think that i can't share these with you. and that you have to be willing to put in some extra homework to do them. if you have the time and inclination, it is worth it to look at my options strategy in the book. the stock i use to demonstrate happens to be google. i do what's known as stock replacement. okay? i use calls to replace the stock and with a very high dollar stock it is worth it. it's a cheaper and less risky way to what i call creating a google at a more reasonable dollar amount price than it currently sells at. if you have watched options action you will have no problem understanding my theory of

creating common stock with options. here's the bottom line. now you know the basics and one that allows you to generate small gains and i can tell you from my old hedge fund they do add up over time. stick with cramer. time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade. [ radio chatter ] ♪ [ male announcer ] andrew. rita. sandy. ♪ meet chris jackie joe. minor damage, or major disaster, when you need us most, we're there.

state farm. we're a force of nature, too.

you snapped it, shouldn't you get more than a few likes? turn your pictures into stock advice. the next time something connected to a company that you follow captures your eye, take a photo and tweet @jimcramer with

the hash tag, stock picks. he'll give his take on the bigger picture. it's cramer's stock photography. are you ready, let's take some tweets. first one, this comes from bison boy 51. it says, jim, our stocks splits a thing of the past? these are tricky because initially after stock splits on the four for one basis you get a lot of selling. i wish a lot of companies would split because we have a lot of people who want to own stocks and as soon as they hear about that big dollar amount, even though it's not in the market -- yeah, the dollar amount they don't want to be in it. i can't keep trying to do missionary work, saying listen, it doesn't matter if the stock is at $300, split your stock. maybe you don't want an individual investor. our next tweet is say, hi, jim.

can you explain when a large institution buys an equity it goes down in price? i think that -- that's too cynical. that is not the case. often it's the case that the stock gaps up when a major firm recommends. i know there's a belief, wait a second, they're taking out their friends. you can get into trouble if you leak your buy recommendations. it's not worth for it to someone to lose their job. maybe they have no power to recommend it. they have no power. meaning people don't respect them enough. here's another tweet. oh, yahoo! k, words cannot describe my love and respect for you. you pick me up with your knowledge. thank you. i need to do the same from you. it's really pretty amazing. i does matter. i leave for the office a lot, man, that show was hard.

regina my producer often has to bear the brunt when i said, man, that show was hard. when i get e-mails and tweets it makes it worthwhile. thank you. this tweeter says, has the bull market ever ended without the fed raising the rate? yeah, a calamity can change everything. the fed may have no control over what so ever. let's make the next tweet from brad, which says, what's your opinion on computerized high frequency trading? does it hurt the average trading? not only does it hurt the average investor, but if i was the head of the s.e.c. i would call town halls and say what makes you want not to be in? they'll get high frequency trading which should be stopped because i believe it's trading on inside information. stick with cramer.

see there are methods to my madness. there's always a bull market somewhere and i promise to find it for you right here at "mad money." i'm jim cramer. i'm jim cramer. see you tomorrow. >> the following is a cnbc original. >> on a test track in connecticut, a 2007 chevy cobalt goes through the paces. suddenly, a little tug on the key chain... all right, there it goes. ...and the engine stalls... the power steering is gone. ...no power steering... it's me trying to drive. ...no power brakes... i've got to pump the brakes. ...and no airbags -- the result of a long-hidden defect in two and a half million gm cars. >> we've got a huge recall to tell you about. general motors is... >> the car just lost power. it was like it just shut off. >> 911. what's your emergency? >> we're driving on north highway 59, and a car just spun out of control and flipped over into the woods. >> it's being blamed for accidents... >> i recall being really close