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Ignore Cramer regarding this

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January 15, 2013 – Comments (7) | RELATED TICKERS: BA , H

I usually don't watch Cramer's show.  I usually am eating dinner and then going for a walk afterwards (as per my doctor's advice) during his 6 pm show.  So far the walking and adding horseradish into my diet has knocked a good chunk off my belly.  As for horseradish I urge all to introduce it into their weekly diet.  It is a miracle food.  I could go on here about the virtues of horseradish but I digress.

Once in awhile I do catch some of Cramer's show.  Of note is his advising his viewers to buy deep in the money calls instead of the common with respect to AAPL in particular (although he did say that for other high priced stocks).  If I can convince just one reader not to do so then the time spent on this blog was worthwhile (or if I convinced someone to start eating horseradish).

He said this when he was on his "Aapl as an investment" thesis run.  Aapl was flirting with 700.  So now the person who bought those deep in the money calls have been pretty much wiped out.  Had you bought the common you still receive a yield and no pressure in selling (unless you went heavy margin).

Common shares are not time sensitive.  When you buy it you buy an ownership interest in a corporation.  When you buy calls it is basically a time sensitive price obligation. Anyone who tells you to invest in a company through calls instead of common shares should have tomatoes thrown at him.

 

7 Comments – Post Your Own

#1) On January 15, 2013 at 1:35 PM, EnigmaDude (85.75) wrote:

I generally ignore most things that Cramer says.  And thanks for the tip on horseradish!  I will definitely look into it further (do my due diligence!)

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#2) On January 15, 2013 at 3:50 PM, MegMom12 (< 20) wrote:

I generally do watch Cramer for fun!  Could APPL be what he calls a broken stock not a broken company?

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#3) On January 15, 2013 at 6:42 PM, L0RDZ (81.01) wrote:

A wall because  I   want   ya  to be healthy,  might I also recco  that  you add drinking  cold water to your diet,  drinking cold water  forces  your body to burn calories by having to warm itself  from the  reaction to cold water entering.

It's  a  scientifically proven fact  in case anyone doubts.

I'm not much of a  Crammer  nor  apple  fan,  you'll see that I was  one of the few  fools  to actually  red thumb  apple, and although  I felt  rather foolish seeing it run up and me not being able to do much, but as  it  has come down I don't look so bad   in my caps related score world.

I'll watch Crammer  for entertainment purposes and not for investment advice,  you'll get your  head  handed to you by just blindly following that guy or any guy,  if anything when the smaller guys  had money who watched him,  you'd  be able to get a nice pop when-ever  he  focused on any stock, now  not so much as  I see it...   the little money has gone to the big money.

Had  anyone  bought  apple at 700 a share,  hopefully they only  bought  in  portions  and  didn't  go all in ?  if they did, hopefully  they sold some on the way down.

Apple  only  recently   started with a  dividend,  and  although I  also  don't  do  the options aspects,  options  are   more complex  and  a  much easy way  to lose all  your money, not just on  apple  or  deep in the money calls...

And  yes  they are time sensitive.

Good job  on  the weight loss.

  

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#4) On January 15, 2013 at 10:46 PM, awallejr (79.46) wrote:

Enigma trust me it is truly a miracle food. I prefer Gold's red, but if you want to shout "wow" as loud as that guy from the Staples commercial Vita red would do the trick.

Meg the point really isn't a knock on Apple.  I certainly don't think it a broken company.  The point is if you are going to invest in a company buying options is NEVER the way to do it.  He just wiped out all his viewers who listened to him with this advice.  You don't have to buy a 100 shares to invest.  You want to invest say $5,000 then just buy $5,000 worth of common. Don't worry about the actual share count.

And LZ I agree about water.  I have replaced my diet soda consumption with filtered water.  I do, however, hate buying water at restaurants.  Man the profit margin is ridiculous.  A 16 cent supermarket purchase being sold for over 2 bucks;/

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#5) On January 15, 2013 at 11:52 PM, Momentum21 (50.82) wrote:

What is the deal with horseradish? David in Qatar turned me on to Mark Sisson a while back...changed my whole diet without feeling deprived. I didn't need to lose wait but wanted to cut out the crappy food I was eating...wasn't hard to do, just takes more time shopping and preparing food since it doesn't come frozen in a box.

  

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#6) On January 16, 2013 at 9:46 AM, woodie75 (< 20) wrote:

I agree with the horse radish (shredded is best). Keep it off the roof of your mouth, along with some of Cramer's advice.

 

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#7) On January 16, 2013 at 4:36 PM, whereaminow (< 20) wrote:

Horseradish (depending on how it's prepared) and walking.. both very popular in paleo community.  Here's to a healthier 2013!

Good luck with you goals!

David in Ketogenic Liberty

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