Does anyone short sell or use puts when Jim Cramer has his recommendations?

Question

There was a small study done by a college that showed you actually make $$$$ by doing the opposite of what he says to do. Basically you wait 1-2 days for the stock to run up in price, then you buy a put that second day. Then after 5 to 7 days it drops below the price that it was first reccomended at. Then you make a nice profit. Simple, yet ingenious!

Answer 1

I did a couple of times. He had (STUPID) such run ups after he said stocks that stocks were getting bid up for NO reason and people were overpaying.

Then the next day, the market maker comes in and sees the order and laughs, "Cramerica!". Opens the stock gap up, fills all those "need to have" market orders, and promptly brings the stock back down to earth!

I traded a couple of those fades and overall, it was fun.

Now, he's finally learning and for the past 6 or so months, he tells people not to run up the price, but to wait a couple days to get in. I guess most of his Cramerica should now FINALLY know this after taking hit after hit after hit on their portfolios, but there's always the newbies.

That said, it's not what it used to be. But, if you TIVO the show to get his picks, you can still spot the low hanging fruit every so often.

No limits!

Answer 2

The problem is that the second he says it your opportunity is already blown. Efficient markets blah blah blah.

Im convinced the only people who can beat the market are the news makers, inside traders, and gazillion dollar hedge fund managers, who make the market.

Answer 3

I love it! I haven't tried it, but it sounds like a perfect play to me! He's not just a "talking head"...he's a "squawking head"! And there is so many lambs who follow......

Thanks for the idea....and a good laugh!