Trading Cramer's Lightning Round, March 10, 2011

Here's today's lightning round picks.

Potash (POT) - Cramer Says Buy

Cramer says to buy on a drop of 10%. Based upon recent prices, that would mean buying at $50. Selling the April $50 put for $1.51. If the stock drops below $50, you're buying shares for $48.49. Otherwise, you're earning a 3% return on your money at risk, over a period of 36 days, an annualized return of 30.6%.

Paramount Gold (PZG) - Cramer Says Sell

Cramer says that he doesn't want anyone to own that stock until it gets to $3.00 and I will go a step further. Don't trade it.

Activision Blizzard (ATVI) - Cramers Says Stay Away

Jabil Circuit (JBL) - Cramers Says Stay Away

Let me tell you, Cramer says stay away, but you could go with a covered call here and collect a nice profit on in-the-money calls. The April $19 call is selling for $2.00, which means you can buy today fo $20.22 and automatically sell for $21, making $0.78 per share. This is a 3.8% yield on investment over 36 days, or 39.11% annualized.

The break-even on the trade is $19.44, but the downside risk is really the same as owning the shares outright. If shares trade below $19, you don't sell automatically.

Caterpillar (CAT) - Cramer Says to Take Profits and Buy Back Lower

Based on the April 2011 $100 call, the investor could lock in a selling price of $103.40 based on the current bid of $3.40 per share. Otherwise, the call premium is yielding 3.45% over the next 36 days (35% annualized).

AIG (AIG) - Cramer Says Sell

Taxpayers are the biggest shareholders here. I'm not betting against taxpayers or the U.S. Government. I'll wait and see, even though Cramer says sell.