Jim Cramer Blog

PEIX is up close to 12% since we recommended the stock last week. There is another possible trade to consider. Although it is possible that this stock may hit $40 a share by the third week in may, it would take quite a rally to do so. Thus, you may write a May 40 call for $1.15. Up front, it will yield a 3% gain, with the possibility of $4 in appreciation if the stock is called away from you at $40. If called away at $40, you'll be able to stack on an additional 14% on top of the 12% already realized.