Top Takes From RealMoney

3. Buffalo Wild Wings Breaks Out

Gary Morrow
2/12/2009 11:48 AM EST

In the words of Buffalo Wild Wings (BWLD Quote) President and CEO Sally Smith, "2009 is off to a great start." This morning, the company reported fourth-quarter EPS of 43 cents, topping estimates of 39 cents. Revenue grew 32% year over year, also above estimates. The company also said that 25% revenue growth and 20% to 25% EPS growth are achievable in 2009. As a result, Buffalo Wild Wings began the day with a huge gap higher open and is now up 28%. Volume on this breakout is already six times the daily average, helping power the stock above its January highs.

Buffalo Wild Wings has now doubled since it bottomed in late November and is closing in on some heavy resistance near $30.00. I expect the stock to run into a bit of trouble here, which may lead to a healthy pullback. A 30% one-day gain is a bit excessive, but I do believe the breakout today is legit and that Buffalo Wild Wings will work its way higher in the next few months. I will be waiting for a pullback before jumping in.

4. Options Traders Get Bullish on Homebuilders

Jon "Dr. J" Najarian
2/12/2009 7:49 AM EST

Two midsized homebuilders are drawing bullish options trades in heavy volume.

Meritage Homes (MTH Quote) and Ryland Group (RYL Quote) are both rallying this year and seeing puts sold on the bids in large numbers. Normal put activity over the past 30 days has been 3,000 contracts for MTH and 5,300 for RYL. As of late yesterday, however, the two companies had 33,000 and 49,600 puts trade, respectively.

The action involved selling at various February and March strikes in huge blocks ranging from 10,000 to 19,000 puts each, according to OptionMonster's tracking systems. Meritage is up some 48% since Jan. 20 and closed yesterday up 4% to $17.27. Ryland is up about 15% in the same period and finished the session 1.5% higher at $18.04.