. >> mike chouw. >> put diagonals in tarlts >> that does it for us this friday options action will bemoney" with jim cramer starts now . >>> 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 other people want to make friends, i'm just trying to make you some money my job is not just to entertain but educate and teach you so-c so call me or tweet me we're in the grips of an inflation scare that's put a choke hold on the growth stock

mike chouw >> what do you see >> when people go out and buy calls, there's a potential impact on the price. the reason for that is that if retail or institutional traders are buying calls from market makers, the market makers need to hedge to do that, they buy some measure of the stock the tricky bit about this, though, is that if everybody is buying options and the market makers are only short those options, as the stock prices rise, they need to buy more and more stock to maintain their heads. because movements in the stock price rises. if you look at the open interest in names like gamestop, you see there's 15,000, 20,000, in some cases more than 30,000 contracts. 30,000 contracts is the equivalent of three million shares as the stocks start mieg greating they need to start selling stock to maintain their hedges this exacerbates the volatility. i think part of it is retail buying and selling of the stock. part of it is buying and selling of the options, market makers to hedge those beds also i believe that market makers are net short these options, so as the stock moves they are e