Options Look Could Yield a Buyable Dip

Maybe the bulls get a chance. If we get a negative options reading at the 2:30 p.m. EDT "early look" (the look by the trading desks at how much buying or selling there might be to do on Friday's expiration), a look that shows that much of Tuesday's spike may have been option-related, we could quickly get an S&P jam-down by desperate bears who need this sucker to give back some of its gains.

The fact that some stocks have given up the ghost to slip to lower strikes -- Bear (BSC - commentary - Cramer's Take), NYSE Euronext (NYX - commentary - Cramer's Take) and Sears Holdings (SHLD - commentary - Cramer's Take) (the latter being the two worst-acting stocks in the chartbook) tells me that you can't rule a quick dive out.

If that's the case, ready yourself. Bob Marcin and I have been back and forth and he likes Terex (TEX - commentary - Cramer's Take) and Caterpillar (CAT - commentary - Cramer's Take), which I endorse, among a host of other stocks including Flextronics (FLEX - commentary - Cramer's Take), Merrill (MER - commentary - Cramer's Take) and Commercial Metals (CMC - commentary - Cramer's Take).

He's got a list. Do you have a list? I think you will need one for the quick declines that options looks could generate. That's where the chance lies.

I find it intriguing that Bear is going down as Lehman (LEH - commentary - Cramer's Take) did ahead of the move. My simple answer is, that doesn't seem right, but this group is so heavily shorted that someone might just be trying to put on something that can give them the downside that might not come.

Random musings: Earlier this week I suggested some option plays. P&G (PG - commentary - Cramer's Take) and Altria (MO - commentary - Cramer's Take) aren't doing much of anything. But I did say that I thought Caterpillar and Schlumberger (SLB - commentary - Cramer's Take) could gallop to the next strike. These were true home runs, and if you did them I want you to take off half of the positions and maybe go buy a subscription to Options Alerts, which has been our hottest product.

At the time of publication, Cramer was long NYSE Euronext, Sears Holdings, Caterpillar and Altria.

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