Surfacing for the Free Shot

The options hangover is forcing the market to find a more natural equilibrium.
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Bit of an options hangover here. That's where last week's futures press the market up (see numerous articles last week) and now the market is trying to find a more natural, lower equilibrium.

How is it manifested? You get people who came in long some stocks through exercising calls (like me, as I exercised everything) so we could take the free shot to the upside.

For example, if you exercised the

Cisco

(CSCO) - Get Report

July 65 calls for a bet on today's action, you might have flipped the stock out. Same with

Sun Micro

(SUNW) - Get Report

and a bunch of other stocks that finished at the strike but had no news today.

These free-shot people -- and there are thousands upon thousands of them -- always surface after a big, strong week like the one we had last week. It is harmless, and I would not pronounce the weakness major.

Random musings:

The

Redback

(RBAK)

/

Brocade

(BRCD)

curse (meaning my buys from last week) continues to haunt us. We are waiting 10 points on both before we buy any more.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Cisco, Sun, Redback and Brocade. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.