view transcript

Katherine: 
Sarge, what should investors be thinking about GE right now?

Sarge: 
Well, you know what - I don't think it should be in equity in GE at all. And I, I'm not, I'm, I'm more of a basket of calls and a basket of puts that expire in October and January that go out of ways. And I really bought this basket for pennies a couple months ago. And when you do something like that, you don't really take on a lot of risks. But look, all of a sudden the stocks coming in, I actually have profit on the put side of this trade now and I didn't expect that. And it's welcome at, you know, after the weekend, the month we're having, you know, something that turns out correctly. It's really nice to see. So what I would recommend, I guess, is the word, to retail investors is to play this strictly through the option space and strictly in far dated options that you can get for the cheap, that if you lose all the money, oh, well you lost a cup of coffee.

In case you missed it, General Electric (GE - Get Report) was slammed Thursday, Aug. 15, after Harry Markpolos--the Bernie Madoff whistleblower--came out accusing GE of financial misconduct. 

GE came out denying the claims. 

And then, during afternoon trading, CEO Larry Culp made a statement against the claims, saying, "GE will always take any allegation of financial misconduct seriously. But this is market manipulation - pure and simple."

Real Money's Stephen Guilfoyle weighed in on how investors should react to GE. 

"So what I would recommend, I guess, is the word, to retail investors is to play this strictly through the option space and strictly in far dated options that you can get for the cheap, that if you lose all the money, oh, well you lost a cup of coffee," recommended Guilfoyle. 

Premium Pick: Despite Hard-Punching Amazon, Walmart Holds Own as Retail Heavyweight

Jim Cramer LIVE Replay: Jim Cramer on Recession Fears: 'Dial Back the Hysteria'

Jim Cramer Highlight: Why Bonds Should Keep The Average Investor Up at Night

Investing Education: What Investors Should Know About the Yield Curve Inversion And Tariffs

Trade War: What Investors Should Know About the Yield Curve Inversion And Tariffs

Earnings Preview: Nvidia Earnings: 3 Things to Watch

TheStreet Explains: What Are Tariffs and Why Do They Move the Market?

Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud

Catch Up: Today's Top News Videos Below