Oops!

Apparently in my fever-induced haze yesterday, I misunderstood Cramer. I thought he was looking at potential takeover targets in the drug sector only but obviously that isn't the case given his picks today.

He proposed that Illinois Tool Works (ITW) acquire Manitowoc (MTW) (which, by the way, he mispronounces but I'll cut him some slack since he's not a Cheesehead) and Nike (NKE) for Under Armour (UA). Both look good to me, especially a Nike/Under Armour merger and am rather surprised it hasn't happened already. If you like it, too, and are looking for a cheap, conservative way to play it, I'd suggest the July 25/30 bull-call spread at a $2 debit. The maximum loss here is $2 (the debit amount) with a maximum gain of $3 (the difference between the strike prices less the debit).