Do the exact opposite of Schaeffer

Bernie Schaeffer of Schaeffer's research was on the nightly business report on Friday, and he must have been free-basing crack cocaine before the show. I just think this is horrible, high-risk advice to give at this time. It wouldn't be that bad if he wasn't recommending 5 and 7 month options. Here is the transcript from the show, you be the judge:

SCHAEFFER: OK. On the call side, I'm looking at the S&P-- the spider S&P home builder ETF, (XHB). I'm looking for the home builders to lead the way as this bear market rally might unfold. I'm looking at seven-month option on that instrument with a 23 percent premium, good premium, big move potential. I don't own XHB.

SCHAEFFER: Wells Fargo (WFC), financials looking to lead the way again. Wells Fargo, I'm looking at a five-month call option with a 19 percent premium. I own Wells Fargo.

KANGAS: OK and one more.

SCHAEFFER: On the put side I'm doubling down on Microsoft. This is stock that's heavily owned by hedge funds, vulnerable to liquidation. I'm looking at a five-month put on Microsoft with a 15.

KANGAS: Do you own one?

SCHAEFFER: I don't have a position in Microsoft.

KANGAS: OK. The only position you have then is in Wells Fargo.

SCHAEFFER: Correct.