Top Takes From RealMoney

The RealMoney contributors are in the business of trading and investing all day on the basis of ongoing news flow. Below, we offer the top five ideas that RealMoney contributors posted today and how they played those ideas.

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1. Busy Day for Morgan Stanley Puts

Chris McKhann
2/12/2009 2:11 PM EST

Morgan Stanley (MS Quote) has more than doubled in value since its lows of November, but the rally may be stalling out.

As MS headed south toward $22 earlier today, the February 22 puts were hitting hard. By midmorning more than 10,000 contracts had been bought in large blocks across multiple exchanges, many going for $1.05 to $1.15. This action is against open interest of 4,028, and the puts are now trading at $1.40, according to OptionMonster's tracking systems.

This is a short-term play, which could just be protective in nature, though that would be expensive insurance with a very short time frame until the options expire. MS is already trading right at $22 this afternoon, down 4% on the day.

2. Time Warner Split Fully Approved

Steve Birenberg
2/12/2009 3:17 PM EST

Time Warner (TWX Quote) is out with a press release noting that today's IRS ruling is the last hurdle required for the split from Time Warner Cable (TWC Quote). All required approvals have been granted. The split should occur by the end of the quarter.

I still see this as a positive catalyst for the new content-only TWX.