This company just hit "the trinity" of tech plays, CNBC's Jim Cramer said Tuesday.» Read More
Intel has been holding near its 200-day moving average, and yesterday the chip maker saw steady and impressive upside option action.
The November 24 calls lit up early, trading in size for $0.44 and followed by a large chunk that went for $0.62. About 19,500 contracts traded in volume well above the strike's previous open interest of 3,938, showing that new money was put to work.
These calls lock in the price where the semiconductor stock can be bought, letting investors cheaply position for a rally. They can also generate some nice leverage from even a small movement in the underlying share price.
CNBC's Jim Cramer said Monday that although Facebook shares are trading at all-time highs, the stock remains undervalued because of the company's huge growth prospects.
"People are talking about monetizing everything. The love for Facebook now ... is equivalent of the hatred at the $25-26 level," Cramer said. "Let's never forget that the IPO soured people."
(Related: Should investors 'like' Facebook?)
"This stock is now approaching stratospheric levels, but still I think it is undervalued. Why? because people love growth and it is growth galore," he said.
In July, Cramer explained that his bullish outlook on the Facebook is based on the company having found the "holy grail" of advertising, with a unique ability to reach the millennial generation. He added that Facebook is a "must" for large advertisers seeking a global reach and will lead the charge on innovation.
On Monday, Cramer also expressed optimism that Facebook will develop money-making, non-intrusive ad products on its core platform, as well as on Instagram. So far, Facebook CEO Mark Zuckerberg has "kind of amazed us for being able to develop product that has not turned people off," Cramer added.
The bulls piled into home builders and related stocks on Friday, triggering a flurry of upside option activity.
Mohawk Industries, a maker of flooring products, hit shortly after the open as investors snapped up the November 115 calls, most of which priced for $9.85. More than 2,400 of the options traded against previous open interest of just 195 contracts, indicating that new positions were initiated. Mohawk rose 3.58 percent to $121.38.
These calls lock in the price where shares can be purchased, letting investors cheaply position for upside and control the amount of money that can be lost to the downside. They can also generate significant leverage when a stock goes up.
Microsoft is an unwieldy business and should be broken up, CNBC's Jim Cramer said Friday, and the tech giant needs a savior like Ford's Alan Mulally to drive a corporate "miracle" and get the company back on track.
Although Cramer dismissed the rumor that Mulally would jump to Microsoft—because his job isn't yet complete at Ford—Cramer said that in theory, Mulally would be a good thing for the company.
"I still think Alan wants to get to $3 to $4 earnings power for Ford before he's done," Cramer explained on "Squawk on the Street" Friday. "He's worked miracles at Boeing, he's worked miracles at Ford—he could work miracles at Microsoft."
(Related: Ford CEO plays down reports of an early exit)
Cramer said that Mulally's strategy would be to find the right people who are "charged up" to bolster Microsoft's business and would simultaneously avoid troubled, high-cost acquisitions like those that have plagued the company in the past.
Cramer predicted that Microsoft would eventually be broken into three pieces, adding that "it is too big, too unwieldy and it's not getting anywhere. It's time to break up Microsoft."
Microsoft has to do "something wild," Cramer explained, like spinning off the Xbox business that is "buried within" the company, or turning Nokia back into a pure cellphone company and using the proceeds to buy a company like Sprint. "You could go buy Netflix with Xbox," he said, and run the Windows business like a utility company with reliable cash flows.
Cramer listed the big components as the Windows operating system business, an entertainment business—including Xbox—and the "other" business with the Nokia cellphone division as a cornerstone.
The bulls came back to Cheniere Energy after a long hiatus yesterday, and the move paid off almost instantly.
OptionMonster's tracking systems lit up with unusual activity in the October 34 calls late yesterday morning, with traders snapping up big chunks for $0.23. We immediately flagged the trades in our chat room and via email to our subscribers, and it was a good thing we hurried.
Barely 10 minutes later, buy orders started hitting the stock, driving it up $1 from its level when the calls appeared. Those October 34s more than doubled to $0.50 in the process.
Regis Philbin, stock picker?
The veteran talk-show host might be best known for his near 30-year run on the popular television program "Live!," but he's also an avid stock market observer and investor, who recently called into CNBC's "Fast Money" to offer a call on data storage maker Micron Technology.
"It is on a rampage. I think it's headed to $18, maybe to $20," Philbin said.
Micron shares rallied to their highest level since 2006 on Wednesday following news that a major fire forced rival Hynix to suspend operations at its Chinese factory.
The stock closed at $14.75 a share on Wednesday and was sharply higher in midday trading on Thursday. (What's the stock doing now? Click here)
Asked by professional trader Guy Adami whether he plans to take profits following the stock's recent pop, Philbin said he's "sticking with it" because he thinks the stock has more upside momentum.
Financials were on the move yesterday, and the fast money was targeting JPMorgan Chase.
OptionMonster's tracking systems detected heavy volume in the weekly 52.50 calls expiring this Friday, with big trades hitting early for $0.11 to $0.15. An even 16,000 traded in volume far above the strike's previous open interest of 2,685 contracts, indicating that new positions were established.
These calls lock in the price where shares can be purchased in the financial giant, letting investors cheaply position for a rally. These options also control the amount of money that can be lost if the stock falls.
NextEra Energy has pulled back to a key level, and momentum traders are piling in.
OptionMonster's tracking systems detected the purchase of more than 4,300 January 82.50 calls, most of which priced for $2.20. Volume was more than 16 times open interest at the strike, indicating that new money was put to work.
These calls lock in the price where shares can be purchased in the power-generation company, letting investors cheaply position for gains and enjoy major leverage if the stock rallies.
CNBC's Jim Cramer said that despite headwinds of rising interest rates, the auto industry is back and going through an "amazing renaissance," where Ford Motor is set to lead the pack.
"I've been worried that rates going up would eventually impact some of the deals that the auto companies can do - clearly not," Cramer said Wednesday, adding that there are promising innovations to come in the auto market, such those by Westport Innovations, which looks to put LNG engines in Ford trucks.
(Watch: Ford August U.S. sales up 12.2%)
"This is really an amazing renaissance," he said. However, Cramer said that since Ford has a large European operation, its stock has been weighed down by relatively weak sales on the continent. "But I do believe that Ford, which is owned by my charitable trust, is breaking out of the pack."
Cramer said that Ford has positioned itself well with high-margin trucks and a "one car" strategy that allows the company to generate better global efficiency and higher profits per car.
"The country is back," Cramer said.
Ford said Wednesday that U.S. auto sales grew 12.2 percent, with the strongest growth in its truck segment, which grew 18.4 percent. In addition, the company said it would be raising fourth quarter production by 7 percent to 785,000 vehicles, the highest level since 2006.
(Read more: Vroom! Vroom! Auto sales jump in August)
Toyota Motor also reported August U.S. sales that beat expectations, growing 22.8 percent versus the 15.6 percent street expectation.
In addition, General Motors was another major car maker to report better-than-expected U.S. sales, with 14.7 percent growth versus an 11 percent street expectation. GM VP of Sales Kurt McNeil told "Squawk on the Street"Wednesday that monthly U.S. auto sales will "definitely" come in "well over 16 million, absolutely."
CNBC's Jim Cramer says Vodafone would be the clear winner—at least for now—if it succeeds in selling its 45 percent stake in the Verizon Wireless joint venture.
Verizon shares rallied strongly on the news Thursday, closing up 2.71 percent. (Click here to see where Verizon shares are trading now.)
"This is an exciting deal because Verizon will look very different," Cramer said on "Squawk on the Street."
(Read more: Verizon, Vodafonediscuss possible $130 billion deal)
But although the company would have new operational opportunities with complete ownership of the joint wireless arm, "people are getting too excited about Verizon here," Cramer said. He cited increased competition in the wireless market and noted that when the stock of an acquiring company jumps higher in premarket trading as was the case with Verizon on Thursday, that often signals the stock will recede in later trading.
"If you really like Verizon, you'll get a better chance" to buy it later, he said.
Recently, Verizon was trading down because of a rising yield on the 10-year Treasury and cut-throat competition from companies like T-Mobile, which has been gaining market share.
On the other hand, Cramer said that "Vodafone seems really attractive to me here, because the stub of what's left is way too cheap. Vodafone makes sense to go higher."
He added that with improving economic indicators in Europe, Vodafone is a "great way" to play the economic recovery. "Vodafone has some great assets that have been really undervalued because Europe has been bad," he said. "If we were over in London, I think we'd be very excited about Vodafone and what the implications are for the new Vodafone. That's a buy."
"If you think Europe is coming back, like I do, Vodafone is a great way to play it," he added.