'RealMoney' Radio Recap: Simply the Best

Have other people finally started to recognize that this is the best stock market we've had in six years, Jim Cramer asked his "RealMoney" radio show listeners on Monday.

Brokerage houses are downgrading big names such as IBM(IBM Quote), Amazon.com(AMZN Quote), Boeing(BA Quote), Allegheny Tech(ATI Quote), copper companies, Juniper Networks(JNPR Quote), Wells Fargo(WFC Quote), Altria(MO Quote) and GM(GM Quote); yet the market's reaction has been a march above 11,000 on the Dow, he said.

Ever since Best Buy(BBY Quote) said that it's doing well, it has been difficult to stop retail, which had been in its own private bear market for months, Cramer added, saying that the people betting against Sears(SHLD Quote) must be worried because Kmart sales are up; and Urban Outfitters(URBN Quote) jumped 15% after an upgrade.

This is all happening in a climate bereft of good news, with oil back at $64, negative reports coming out of Iraq and the president's popularity neither here nor there, Cramer said, but it doesn't seem to matter to stocks.

Cramer said that he's thinking about covering short positions in this environment.

"I have not heard of anything substantively positive coming out of Wall Street ... and that can end. But let's accept the fact that we've had more performance so far than we did last year," Cramer said.

"What happens if Wall Street gets on board and Main Street starts buying stocks again? Who knows how high we can go."

Lenny Dykstra, a disciplined trader and celebrity investor contributor to TheStreet.com, has developed a system of calculated risk that Cramer said listeners should know about, which is to buy deep calls to control stocks that he believes are strong companies he knows won't go out of business.

He told listeners that he bought a Wal-Mart(NYSE Quote) deep in-the-money call for June. He bought 10 calls to control 1,000 shares of Wal-Mart, without having to have the nearly $46,000 he would need to buy the same amount of shares outright at the stock's current level.

He's paying to simply control the stock until the third Friday in June for a cost of $6,700, and Dykstra said that if the stock moves up 2 points, his investment will be worth $8,700 because of the amount of time he controls the shares for.