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Stock Market Today With Jim Cramer: Buy Puts or Take Profits in AMC

Jim Cramer tells AMC holders: Buy puts or sell the shares. And he has some sharp words about GameStop and Netflix's new plan.
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Stocks were lower Thursday as traders reacted to Federal Reserve Chairman Jerome Powell's continued dovishness and stronger-than-expected earnings .

The number of Americans filing for first-time unemployment benefits fell last week to a new pandemic low of 360,000.

Stocks closed mostly higher Wednesday after Powell said in congressional testimony the Fed wasn't ready to scale back on its support since the U.S. economy has a ways to go before recovering. 

Buy Puts or Take Profits in AMC

Shares of AMC Entertainment  (AMC) - Get Report are about 50% off their June high. TheStreet's Jim Cramer says that now that the short squeeze is over, investors should "buy some puts so you don't get hurt" or simply take money off the table. 

The short-sellers "know there is no more stock that is going to be sold. So they don't have to worry about a better capital picture," Cramer said from the floor of the New York Stock Exchange Thursday. 

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AMC dropped a proposal to increase its authorized shares to around 550 million from 525 million, and said it wouldn't seek approval for any more issuance until at least 2022.

Netflix Is Making the Right Move Into Gaming

Netflix (NFLX) - Get Report shares moved higher Thursday after Bloomberg reported the streaming entertainment group could be moving into online videogames and sector analysts at UBS boosted their price target on the Los Gatos, Calif., company. Netflix's move could be a blow to the videogame retailer GameStop  (GME) - Get Report

And Jim Cramer has a message for investors in meme stocks, like GameStop and AMC: "I get up earlier than they do. I go to bed later than they do. I work two to three times harder than they do. And I do not intend to be bullied by them. And if they try to bully me, I will just up the ante on their pump-and-dump antics, until [SEC Chairman] Gary Gensler says 'I've had enough.'"