Why You Need Calls on Momentum Names

Momentum names are now surfacing when we have these tough days. Right out of the chute you see buyers of Google (GOOG - commentary - Cramer's Take) and Apple (AAPL - commentary - Cramer's Take) and Research In Motion (RIMM - commentary - Cramer's Take) and Wynn (WYNN - commentary - Cramer's Take). Get used to this process, because you are going to see many days between now and the end of the year where this stand is made.

That's because managers want to keep these up and continue to buy them because they are pure winners. They want out of losers -- financials -- and in to winners, and there is no way to avoid the process.

What has always amazed me is that you will see these stocks actually levitating into the bad days even as you know that if the buyers really wanted to, they could buy them down or sit on the bid side. That's just not the modus operandi of the momentum buyers.

It is why I suggest, again, that you get deep in-the-money calls for these names. They are not going to quit here. They are going to keep going higher because the buyers will not quit.

Random musings: The attack on the financials is just like what we saw in 1990. They take 'em down, Fed takes 'em up. But without a half-point cut, we won't get the big bounce.

At the time of publication, Cramer had no positions in any of the stocks mentioned in this post.

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