but sometimes a stock is so sizzling that you have to buy, buy, buy as soon as you can.n't find these often. they're very rare. but when you find them, you got to remember not to buy all at once. if you want to buy a hundred shares of a stock, you think it's got so much mojo, i'll bless buying 25 shares, even at the high list. believe me, there's always another stock to find, always another train coming to the station. i've got one exception where i'm okay to buy a stock that's actually hitting a new high. if you see insiders buying the stock when it's at a 52-week high, that's a clear signal. it's a rare thing to see happen but have i seen it. it's rarer still that this method of picking stocks doesn't make you money. i love it when i see insiders buying at the high. it's a great sign of their confidence in the business. who knows better than the people running it, right? normally insider buying ranges from meaningless to a small but on its own insufficient reason to buy a stock. a lot of times insiders buy their stock because they want to create an impression of confid

this isn't a country that buys more from us or even these countries that don't buy much they're going to start seeing their sales fall and they're going to go we better buy something american to get a ratio up and. how markets work you know and when you don't have that information always always bad things start to happen yeah why is it said that it's a brilliant argument more more conversations with great minds were alan u.k. right after this but. my. prime. counting on the. wealthy british style is not. the time to explain. markets why not. come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune in to kaiser report. says. back to our conversations of the great minds of the alan u.k. alan is an entrepreneur the founder of underwater kinetics holds over fifty patents his products are exported to more than sixty countries across the globe he's also the author of the book buying america back let's get back to it allan where were did this first come to you what what what inspired you to come up wi

this isn't a country that buys more from us or even these countries that don't buy much they're going to start seeing their sales fall and they're going to go we've got to buy something american to get a ratio up and. it's how markets work you know and when you don't have that information at all they always always bad things are happening yeah why is it said that it's really an argument more and more conversations with great minds with alan u.k. right after this break. you know how sometimes you see a story and it seems so for lengthly you think you understand it and then you glimpse something else and you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom hardy welcome to the big picture. here is mitt romney trying to figure out the name of that thing that you americans call. the far left doesn't want the usa to defeat terrorism. to sell neighborhoods. the only and the christian. folk are going to hold. up in support of the congress because you know the corporate media distracts us from what you and i should care about because they'r

buy low, sell high. it doesn't say buy low and hold. it's sell high. you end up watching stocks go higher without a care in the world but nobody ever made a dime being carefree. the trouble with being complacent is it encourages you to do the opposite of what you should be doing. you're sitting there watching the gains roll in and you feel like selling stock would be the most insane thing in the world. what happens if the rally keeps going? doesn't matter. we sell into strength but we never sell all at once. timing isn't much of an issue. we are not market sellers, technicians. if the rally holds up you can sell more later and higher. the name of the game is preparation. there is no way to prepare for a rally other than by owning stocks. during a rally you can prepare for the bad days and the really bad days that will most likely be coming. the best time to adjust your portfolio is when stocks are ramping higher. you have to approach a rally with caution, not unbridled enthusiasm. when the dow is up a couple hundred in a day i don't think, wow, this ma

buy 1,000 shares every time they lose a point. each time you buy more. the essence of strict scales is that you buy in the increments. whatever decline makes sense, you purchase the same amount of stocks. that's responsible. sometimes i have a problem with that. i like to use wide scale. typically involves a stock like caterpillar. you buy larger and larger positions as the stock goes lower. i used to think a pyramid of buying. another point is 1500. when you are solo, you can hardly believe how low it's trading, you double down. it's a pyramid structure of the best investors i have ever seen. let's don't talk about it. the lower it goes, the larger the buy comes. they leave with you lots of room to maneuver. when it bottoms out you want to pour your money in and allows you to buy the greatest number at the lowest price. you can afford to be patient. when you like the fundaments, you can wait for a sector-wide sell off and that company stock goes down. just make sure the story is intact. do the homework. the stock never will be a bargain no matter how lo

do you believe that message that bernanke is saying, buy, buy, buy? be concerned about inflation. on monday, we put up a chart, on the big board, or the world is coming to an end or you got to buy stocks. simply put, you have to buy stocks. i said it all week, i'm going to say the same thing again, stocks are going up. that chart right there is the five-year performance of the s&p. we're right back to where we were in the 2007 highs. which actually, in four years ago today, there's very few people, i would say probably no one in this building thought that we could be where we are, i want to go back to march of 2008, because that was a very unique period. that's when bear stearns collapsed. four years ago today, four years ago today, i was at the new york jet/new england patriots game. lot of confidence in the air. it was a surreal experience on that sunday, the 14th of september, because everybody in that stadium, was glued to their blackberries or their iphones trying to figure out what was going to happen. that's the day it became that lehman wasn't

i think mike is right on, just buy a call. you don't have to get too fancy in a low-volatility name. >> carter jump in? >> one of the most important think it's healthy when you have names too far too fast like coke philip morris, to have money come out of them. found its way back into other cycles of things. when rotation happens it's not a bad thing it's a good thing and people taking profits and putting more risk on cyclical things. >> tie a nice yellow ribbon on this. one more stocks versus options. 100 shares of boeing would set you back over $7,000. mike's call purchase only risks $125 and that is why we talk options. we will see carter later on in the show. thank you very much. now if you have a question you can send us an e-mail. i love to read them. only the nice ones, of course. the address is optionsaction@cnbc.com. we will answer it. in oir 101 extra right after the show. we also post updates there. check those out. this, in the meantime, is what's coming up next. >> talk about weakness at tiffanys. last week a bear

do you try to figure out if you should buy buy buy. >> i want to talk about how to view a price break in a stock, what it means to you and how to tell you or let you learn yourself whether or not it represents an opportunity. and what a great day to do it. because we have got two stocks. norfolk southern, and national bell. which declined by almost identical amounts today. 6.78 for norfolk sudden, and one for national bell, 6.70. first let me just -- traders who either don't see the importance of home work. or don't have the time, inclination or smarts to do it. many will look at a stock down $6 and decide somehow that's finished. the stock perhaps somewhat unwittingly, when their prices plummet, these traders think season over. these stocks are not going to make the playoffs. the playoffs? so forget them, they're no longer worth betting on. that's the logic. ladies and gentlemen of the stock jury, i have some news for those of you who share this wrong headed view. there's no seasons and there's no one and done playoffs. stocks are just pieces of paper that in any man reflect the sum

these are what people are buying. >> true. >> they are buying conns, my friend.is like yahoo in 1999. >> oh, please don't say that. >> david and i remember a different era where yahoo -- >> we go back to that era a lot. >> pfizer was the key to that market. they had a new drug. >> somebody wrote this morning facebook is now twice the value of yahoo as that spread begins to narrow a little bit. >> it will be interesting to watch later on this fall. >> yeah, it will. and yahoo, it's funny. we haven't talked a lot about the about face of the activist investor there who you would fully expect to have said let's just go for the short term, get the money, return it to share holders. sell the estate. now he seems willing to allow the new ceo to actually try to implement a strategy that will turn it around. that is a big about face for an activist and not typical. something we haven't really touched on that often in the last few weeks. >> did it make you feel he was intimately involved? >> absolutely he was intimately involved. even then it is a little odd given the tact

just buy it. buy it all. >> you never have to short again. >> buy it. >> i had a guy call me today trying to sell me research on the short side. and i said i'm sorry, i think you're going to go out of business. you shouldn't short anymore. >> first of all, i'm a fed, i think they gained credibility and lost credibility. on the communications front, they had a huge risk because they led us to this point. everything that big ben told us, i think he delivered and therefore, you know, bravo because this is the fed that said we're going to be transparent, tell you what we're doing. how do you upgrade growth? how do you upgrade the labor market and at the same time throw everything you possibly can in the same sentence, basically? i have a lot of questions about what the fed did today and a lot of questions about whether, you know, monetary policy can actually equal fiscal policy. i don't believe the fed even though we know they have a growth mandate. i don't think they're in a position to do that. cred

you buy a call and buy two higher price call. it is also where your stock gets called away. since you are short more than long you do this against stocks. >> if i'm long a stock i don't want to add to it but i want to do an override. i want to look to january and buy the january 24.27 call spread. when i call that up i buy one of the jan calls for 1.70 and sold two for a total of $1.70. that structure costs me nothing. against my long i'm covered. i'm not net short win of those options. between 24 and 27 i make all the gains in my stock but make up to $3 in profits. if it is 27 or hi it is called away. i have the risk to the down side as i would with the stock. i cap my gains at basically $30. that's up 37% from here in three months. >> one of the most common questions i get is i bought stock higher and now it is lower. what do i do to make my money back? you get to make the money back without the stock going back to the level you bought it because you are levering the gains between the strikes. we call this a recovery trade. i think it is a great recovery trade for people i

a buy. two tech titans right now. google, not apple is the one to bet on. "mad money" will be right back. >>> coming up -- >> snapping, crackle, pop. >> cramer's always on the lookout for bull markets, and he may have found the next big buying opportunity in the unlikeliest of places. the cereal aisle. is it time to fill up your bowl? stick around to find out. and later, new neighborhood? housing stocks have been building momentum lately. but could the trend be moving from the dotted line to dotcom? tonight, cramer knocks on the door of internet real estate marketplace zillow to find out if it's time to move in. plus, decked out? retail has been all the rage in wall street's runway lately. but can value plays like dress barn continue to stay in style? cramer's sitting down with the ceo of acena retail to see if it's time to dress up your portfolio. all coming up on "mad money." >>> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer. #madtweets. se

. >> buy, buy, buy! >> because seasonably this has been the strongest part of the calendar for that whole cohort. but as i told you last night, we've got a problem. [ crying ] this year, even though 'tis the season for tech, there just don't seem to be many tech stocks that are worth buying. for the most part, the good ones have already run up way too much. and the bad ones, the companies that are levered to the pc or that compete with apple, they seem like death traps. we should call apple the death star for what it does to every other company. however, i'm not ready to write off the whole fourth quarter tech trade just yet. there have to be some technology companies with cheap stocks where the future actually looks brighter than the past. so we searched and we searched and then we search some more. when we finished searching, we came up with one. i saved it for speculation friday. the stock is radware, rdwr. we know that cyberstocks are sizzling. witness how palo alto networks, or how about sourcefire,

not just buy the stock? you don't need to ask that question, just play stocks versus options. >> there is even more left in the trade. >> who is it? the answer when options actions returns. [ male announcer ] trading's like a high-speed train. and you don't want to miss it with thinkorswim by td ameritrade. you get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, plus anytime you need it support. ♪ stocks, options, futures, and forex. get your trading on track. thinkorswim by td ameritrade. trade commission free for 60 days, plus get up to $600 when you open an account. plus get up to $600 a thing that helps you wbuy other things.hing. but plenty of companies do that. so we make something else. we help make life a little easier, more convenient, more rewarding, more entertaining. year after year. it's the reason why we don't have customers. we have members. american express. welcome in. make sure the news keeps coming with thinkorswim by td ameritrade. use the

he is simply buying a call. for everyone who thinks options are tricky, this is as simple as it can get. let's open that play book once again for those. who might be new to the show and options trading. this is a bullish strategy. when you buy a call you want the stock to rise above by more than the cost of the trade. that is all it takes. easy-peasy. anything below that level you will see losses by expiration. that's the tricky part. mike, walk us through this trade. >> so very simply i am looking to buy the january 36 calls. cost about a buck at the time i looked. this is a simple trade because if you buy these things you only need to run through that strike by the amount of premium you are paying. the other thing is i indicated some concern about the economic data we have been getting. much of it has not been that good. we have been talking about how good it has been for stock prices but not for the results of the companies. we're going to hear that this earnings season. >> dan, what do you think of the trade

but now instead of spending $7,000 to buy 100 shares, mike spent just $125 to buy that call.hat's the most he can lose on the trade, but it gets even better. why is that? because if boeing shares do rise, that call will increase in value faster than the stock, meaning more money in mike's pocket. >> yeah! >> reporter: since the time of the trade, boeing shares have jumped 2%, making cohen and carter winners. these high flyers are hobnobbing around the world living it up in first class. but guys don't forget about the trade, but fans only want to know one thing. how can these two make even more cash? before we answer that, let's see how much money was made. had you bought boeing stock at the time of the trade, you would have made 2%. not bad for just one week. but mike's call purchase cost $1.25 can be sold today for $1.60, and that is a return of 0%. 30%. and that is good in any time frame. carter is obviously not here. he's in the uk apparently partying with the prince of wales. he was good enough to take a break and tell us this. greetings from 30,000 feet midway between lo

this is a bullish strategy where dan buys one call. in order to make money you want the stock to trade above by more than the cost of the trade. because you are short that put you may have to buy that stock at the put strike price. you need to be ready to buy that stock and have the cash ready in your account. with that said, why don't you walk us through. >> you can always buy a call generally pretty cheap in wells fargo. i wanted to set up a structure where i had this very cheap premium exposure to wells fargo. when the stock was about 36.10 i sold the january 13 put to buy the 38 call for 90 cents. if the stock is between 33 and 38 on january expiration i lose the 10 cents in premium. if the stock is above 38.10 i make money, two dollars away from where the stock closed. this thing is going to move like a synthetic lawn. as the stock goes lower you are going to feel losses. as it goes higher you will feel gains. you are likely to trade out of this before that. >> you are betting with the fed. the banks issue $1.25 billion over the p

it's time for the lightning round buy, buy, buy. sell, sell, sell. that's the final scoreboard. are you ready, skee daddy? time for the lightning round. i want to go to charles in missouri. charles? >> caller: hey, boo-yah, jim. >> boo-yah. >> i wanted to get your take on key energy services, a stock fell about 12.5%. >> key energy, these are speculations on the ideal that oil is going to go higher. they are call options on oil. that's what they are. if you think oil is going to go down, they are going down. i don't think it is. i think that -- i like -- i like heck. heck is the one that i want to buy. let's go to jason in nevada. jason? >> caller: hello from las vegas. i was wondering what you thought about mom, monsanto. >> i talked about how this market is not giving up the ghost. i thought it would be down 3, 4 points after the great run. this is one to buy on weakness and i don't know if you're going to get any. i'm going to go to thomas in new mexico. thomas? >> caller: jim, my stock is fifth street finance, fsc. >> i'm going to send you, are you ready, ski daddy, key bank

like to have enough money to buy anything i want. oldest dreams are fuelled by advertising in a society bent on consumption everybody is supposed to think alike and go on a buying spree without a second thought about why they are buying something. for the month no longer wanted to be part of the rat race he set up a so-called eco loft with like minded friends the group rent a rundown communal flat not far from the kremlin the idea is to use that as the springboard for a radically new lifestyle they formed in anti-consumer community with the motto reduce reuse recycle you can make a bicycle out of six hundred seventy recycled tins and you can save six hundred fifty kilograms of oil by recycling one ton of plastics the young men take containers loaded with plastics glass paper and metal to a recycling station it's not. normal in russia to separate garbage man and his friends are guided by the wisdom of the indian guru mahatma gandhi he urged people to bring about the sort of change they wanted to see in the world and a man has given up

or do you try to figure out whether you should buy, buy, buy and not sell? on a quiet day when the dow inched up just to beat the clock, fell .21%, i don't want to talk about how 30 t.o. view a price break in a stock, what it means to you and how to tell you, or let you learn yourself, whether or not it represent an opportunity. and what a great day to do it because we have two stocks. norfolk southern, railro giant, and bed bath and beyond. which declined by almost identical amounts today. two different stocks and two very different industries. ones that illustrate, not the concept of trading which i'm increase lig tired of talking about, but the process of investing. first, let me advise you after keynote advice of way too many people out there, especially traders who don't see the importance of homework or don't have the time, inclination or smarts to do it. many say, that's finished. they punch stocks, perhaps somewhat unwittingly. when the prices plummet, these traders think, oh, season over. to them these stocks are there for not going to make the play

you want to buy right now.'s overextended on the upside but if you take a look a longer term chart, you see it consolidated in multi-years, that's like compressing a spring. spring is released, and this is rocketing higher. 2010, 2011 and twfn highs, yes, it's extend, but we think it's going higher so we want to jump on board. >> sounds like you want to buy google but wait for a better entry point to buy apple. buyer of apple, too, but not until it goes down. let me get to the technical side. you initiated apple with a buy rating. to what extent will the sale of apple 5 impact the buy? >> i think it's kind of a sideshow. google can really stand on its own. fundamentals are really strong. even the desktop, still. growing rate of 15%, 20%. mobile is clearly the story going forward, but, remember, they have android and over 50% market share, so iphone helps on the margin, but certainly over time mobile penetration will help, but i don't think iphone in and of itself has real impacted our rating. >> real quick, you

we don't go out to the store and buy an intel microprocessor. we go out and buy a pc.ou're talking to a dell or hp or whatever wherever in the world, these companies have gone from being fairly optimistic two or three months ago in terms of windows 8 and now they don't sound as optimistic. that's what's troubling. they're the ones who buy microprocessors from intel. >> what's your general take on microsoft? you're sounding pretty bearish. >> i am bearish on microsoft. i think the only reason the stock is up is most portfolio managers were expecting them to increase their dividend. and they did. it went from 20 cents to 23 cents a share. and it's got a 3% dividend. you have to deal with the fact that they're reporting earnings soon and guide. and thinking back to what we've heard already, intel had a revenue shortfall of $1 billion in the quarter. dell and hp a month or so ago, numbers went down there as well. you're looking at a stock up in line with the market where the end markets with getting worse and they may be going through one of the toughest product cycles in

but if your buying into the t l t is a long run alternative to buying u.s. treasuries sitting there at home you may want to think twice about where you are parking your hard earned money and that is why we are breaking down once again e.t.f. . all right let's wrap up with a quick loose change dimitri kofi anan it's wrong listen let's talk about bringing home the bacon was there what is about quite literally i'm going to show you all right along with all that well i don't care what are you going buying all of my going to commercial all right all right well there is no doubt that the drought we faced earlier this year has led to a food shortage some food price rises but did you know it has an effect on the bacon industry look at this. oh oh britain's national pig association blames drought conditions that affected this year's corn and soybean crop that will make it more expensive to feed the little here. prices are expected to go up because of the shortage of pork because people are rushing to slaughter their pigs now why is it up to others because of the it i

cramer, you say the stock -- >> buy, buy, buy! sell, sell, sell!u play the sound -- [ buzzer ] -- and the "lightning round" is over. are you ready skee-daddy? i'm starting with rob in alaska. rob? >> caller: jim, a great big alaska-sized boo-yah to you, the biggest ever. >> done your way, robert. >> my ticker symbol is bgs. i bought that when you had them on the show in may. >> this is a combination of man o'war, seattle slew and secretariat, and i don't see it slowing down yet. sure wouldn't ask you to pull back when i took out 30 -- >> buy, buy, buy! >> thank you so much for bringing it to my attention when the stock was at 12. let's go to ryan in michigan. ryan? >> caller: hi, jim. my stock is hban, that's huntington bank. >> and i want you to stick with huntington bank. it's in a breakout mode. this is one we liked when they changed the management. we stuck with this through three and four and three and four. it's paying off and it's going -- >> buy, buy, buy! >> -- higher! tyler in pennsylvania, tyler? >> caller: hey, cramer, what's going on?

but then do some buying.er the break i will try to make you more money. >> coming up, playing dress-up? forget tom-kat. cramer is taking a trip to spli splitsville. tonight he's trying on a fashionable name that could mean the next success. should you be slipping your portfolio into something more comfortable? healthy headlines? the biggest bio tech names are showing off the newest in medical innovations this week. and cramer has his eye on a few drug makers that could provide the best medicine for your portfolio. find out what is at the top of jim's list. just ahead. all coming up on "mad money." how did i get here? dumb luck? or good decisions? ones i've made. ones we've all made. about marriage. children. money. about tomorrow. here's to good decisions. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there. if you want to find stocks with easy money hasn't already been made, if you want to own something that

when i took out 30, buy, buy, buy!nk you so much for bringing it to my attention when the stock was at 12. let's go to ryan in michigan. ryan? >> caller: hi, jim. my stock is hban, that's huntington bank. >> and i want you to stick with huntington bank. it's in a breakout mode. this is one we like when they changed the management. we stuck with this through three and four and three and four. it's paid off and it's going -- >> buy, buy, buy! >> higher! tiler in pennsylvania, tyler? >> caller: hey, jim, what's going on? >> to get my dad to be able to vote. what is up? >> caller: i'm looking for a dividend that can grow. how do you feel about boardwalk pipeline partners? >> boardwalk empire pipeline partners. i think it's very good. it has been a winner. and i continue to believe that this is one of the better ones out there. i got to tell you, some of them have been very, very weak. but this yield is 7.8%, and i like it. let's take another call. let's go to ryan in ohio, ryan? >> caller: boo-yah from the buckeye state. >

it will buy $40 billion per month. more importantly, the fed said the buying is open-ended-- it promised to keep buying until the job market "improves substantially." and the fed pledged to keep interest rates "exceptionally low" through 2015. stocks rallied right after the fed announcement. the dow jumped 206 points, the nasadaq rose 41.5, and the s&p added 23 points. fed chairman ben bernanke described today's move as "a main street policy." darren gersh reports. >> if you are unemployed or worried about keeping your job, the federal reserve today had a clear message for you-- "we're here to help." federal reserve chairman ben bernanke explained the central bank's decision to take the aggressive and innovative step of launching an open-ended program to buy up mortgage securities. the idea bernanke said is to bring down interest rates on mortgages and other loans even further in a bid to shake the economy out of its rut, and make sure high long-term unemployment does not become a permanent feature of the american econ

is this a reason to buy amazon or a reason not to?do you think in terms of pricing. >> i think very short term, i think you can own it. there will be more announcement. i think there will be excitement going into what the new kindle fire is going to look like. i think on the news, you sell it. you stay on the sidelines. take a pause. >> who is dipping into shares of amazon today? or not. >> i think joe makes a really good point. if you go back a year or so ago, we are at levels here at a double top and the price action is not good. a lot of day left, i understand. if it closes lower than friday's low, i think you have really got to re-evaluate. given the technicals today it may. >> i'm with guy. i stay away from this. >> got it. so everybody is negative on the ne technicals. thanks for joining us. we will see how it plays out. >> thanks. >> what actions are suggesting about the health of u.s. equities. those stories and more when halftime returns. with scottrader streaming quotes, any way you want. fully customize it for your trading

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