The company, which is scheduled to report earnings after the close on Tuesday, has had a monster run and is up 200% since its IPO.
Cramer added that its secondary offering wasn't able to slow it down much, as the stock has rallied hard since then as well.
That's why he suggested playing the name to the long side via call options. Calls will enable traders to benefits from an earnings rally, but limit their downside in case of a big miss.Cramer added that a sour report could quickly send the stock down to $50, which is why he doesn't want to participate using common stock. He concluded that this is a wealth and remodeling play, which is still a very strong part of the market. Homeowners look to Restoration Hardware as a way to remodel their homes for less money than hiring an independent contractor. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in stocks mentioned.
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