Jim Cramer watched as the hatred of drug stocks has become so strong on Tuesday that it finally brought down the entire market. Now the question remains, will the sickness of the drug group that is infecting other stocks ever get better?
"There are many sectors that matter to a market, sectors that can take down everything if their declines are violent enough," the "Mad Money" host said.
The brutal market sell-off that began back in August has not only hit the biotech stocks; it has also created some of the worst carnage out there in the cybersecurity group.
This group was once one of the sexiest plays out there and has gone downhill in record time with the PureFunds ISE cybersecurity ETF down 24 percent from its late-June all-time highs. And even as several individual cybersecurity names have fallen even further, Cramer wonders if they have now hit levels so low that it could be time for investors to circle back to the group to pick up some discounts.
"That's right, at these levels I think it is possible that the once high-flying cybersecurity stocks might actually represent value, even as they are still fairly expensive on an earnings basis," Cramer said.
Cramer considers Palo Alto Networks to be the gold standard, but for a higher-risk/higher-reward play, he blessed FireEye and CyberArk, but only as long-term volatile plays. He recommended using a deep-in-the-money call option strategy with these stocks to curb the downside and magnify the upside.
However, for a cybersecurity play that is truly safe, Cramer is sticking with Cisco.