i want to take a quick look at the options and iwm. this is one of the reasons that i think this is probably a pretty good place to make directional bets if you are looking for a hedge or looking for an outright short, this is implied volatility, the price of options in the iwm, we obviously had this huge spike to multi-year highs but it's stayed relatively -- somewhere in the mid teens percentagewise. that looks cheap to me given that underperformance, today if you are considering iwm as a bank hedging buck one trade i thought about when the etf was about 115 you could buy the december 115, 100 put spread paying $3 for that, could you make up to $12 between 112 and 100 on the down side, 100 was a big support level looking back a few weeks ago. to me this is risking a few percent of the underlying price of the etf to possibly have protection or about 12% gains down to 100 in the etf. >> okay. i'm going to get to the reaction to the trade, but i've got to go to carter first because dan is over there interpreting charts and drawing lines

so today if you are considering iwm, a good hedging buck. when the etf was about 115, could you buy the december 115, 100 put spread paying $3 for that and make up to $12 and $100 and 112 on the down side. and 100 was the level a few weeks ago. so to me this is risking a few percent of the underlying 10% or to the gains down 100% in the etf. >> i'm going to get to reaction of the trade. but i have to go to carter over there because dan is interpreting charts and drawing lines and i need your take. >> look, i mean, one of the things that was the setup for the drawdown, one of the most severe three-day declines on record, the weakness in breath that led to it and they have been underperforming for 18 months. with the russell was, it was there in 14 and now most of 15. if you are unchanged for 18 months, you have no results. and it doesn't look like it is getting better. it looks like it is getting worse. good chart work. >> wow! >> what do you think of the trade? >> i like the trade. there is more leverage some something like iwm. just like in

the price of options in the iwm.e have a huge spike to multiyear highs and come back in like most options prices but it's actually stayed relatively bid and somewhere in the mid-teens percentagewise. that looks pretty cheap given that under performance, if you're considering iwm, one trade i thought about when the etf was 115 you could buy the december 115, 100 put spread and make up to $12 between 112 and 100. to me this is risking a few percent of the underlying price of the etf to probably have protection or 12% gains down to 100. >> i'll get to the reaction to the trade but i got to go to carter first. dan is over there interpreting charts and drawing lines and your take? >> one of the things that was the setup for this drawdown we had, one of the most severe three-day declines on record, the weakness in breath that led to it and small caps had been under performing for 18 months. it was there in january of 2014. all of '14 now most of '15. if you're unchanged for 18 months, you've got no results. it doesn't look

the iwm, here is a year-to-date chart. it consolidated here. it's in a down trend and trying to get back. the iwm is down 11% from all-time highs made in the spring versus the s&p 500. one last point, the iwm is below the upfriend in place since 2011. there is serious relative underperformance here. this is the best bang if you want to short an index. >>> check out the full show tomorrow at 5:30 p.m. eastern time. >> final trade next. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their

. >> offensive about defense, i like the iwm defense in put spreads. >> see you >>> 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, and i promise to help you find it. "mad money" starts -- now. >>> hey, i'm cramer. welcome to "mad money." welcome to cramerica. i'm trying to make you money. my job, not just teach you entertain and educate. so call me or tweet m me @jimcramer. no matter how many times i warn you to avoid calendar investing, meaning some sophomore strategy, sell in september to avoid the treachery of october, seems some people never learn. given that we're on trook have the best october in four years, dow gaining another 74, s&p limes 6.4% and nasdaq advancing 3.4%, maybe investors will think twice before they put their brains in portfolios on month by month autopilot. selling in september, and sell in may and go away for it's by rote ridiculously, imfatuous, lacking of intellect. next week is the busiest of the busy. one of four weeks in the year way too many companies report. i stres

sell the iwm. >> steve grasso. >> it has been a couple of good days back to back and let's see how itt. i'm long. >> chairwoman. >> it was interesting where sun corp wants to buy a bigger share of the merger. i think it is worth a look. >> and >>> 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. and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cray america. my job is not just to entertain but to teach and put it in context. call me at 1-800-743-cnbc. or tweet me #jimcramer. what if the federal reserve is on hold until the rest of the year and we can curtail the endless