Cramer's 'Mad Money' Recap: Next Week's Game Plan

So for "Speculation Friday" Cramer suggested VirnetX Holding (VHC).

Never heard of it? Cramer said that's no surprise since it is a company that does one thing and does it well -- own and protect its intellectual property.

The IP held by the firm, spun out from defense company SAIC (SAI), helps create secure communications over the Internet, which is very important, Cramer said. Right now the company has 20 U.S. and 26 international patents with over 100 more pending.

And they're protected. VirnetX has already sued Microsoft (MSFT) and Apple and will be in court againstCisco (CSCO), Avaya and Siemens (SI) next March for alleged patent infringement in their technology.

It is also suing Apple a second time, for patents infringed in making its iPhone5. If VirnetX wins, it could win royalty payments from Apple. That's a big deal, Cramer said.

But, as with all spec plays, there are risks. In this case the big risk comes if the company loses its patent lawsuits. "If it loses those cases, the stock could be crushed," Cramer warned.

So you have to protect yourself. He suggested using "deep in the money call options" that "give you bang for the buck" on the upside and less risk on the downside, ideally June 26, 2013, $12 call options.

No Huddle Offense

Does anyone in Washington know how to start a small business?

Cramer said he doubts it. Small business needs traffic and that means customers. "Who in Washington is worried about customers?" he wondered. "It's not even part of the conversation."

Small business is worried about keeping customers, who are their lifeblood, Cramer noted.

Without a deal the U.S. won't be able to pay its bills, and if that happens it will lead to the type of austerity being seen in Europe and thus a lower standard of living. And that's a big hit on small business.

The U.S. can't afford its current high level of entitlements, which is why long-term spending cuts are so important, Cramer said.

But both sides don't seem to see that, or a way to find a compromise. Cramer said they need a dose of reality.

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-- Written by Anthony Buccino and Margo D. Beller in New York.

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, GE.

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