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. Chipotle Mexican Grill

Scott Rothbort
11:41 A.M. EDT

I was going to work on a piece for the LakeView Restaurant & Food Chain newsletter on high P/E growth restaurants. These seem to be traded in the hands of the Investor's Business Daily crowd that prays at the altar of momentum.

In terms of Chipotle Mexican Grill(CMG Quote), this company always sells at a huge P/E, but I would note that growth has slowed down. As [for] a short earnings trade, Chipotle is much like Google(GOOG Quote) in that the stock will move in huge chunks after an earnings release and there is no telling in which direction it might move.

There is risk on laying a short on Chipotle for earnings. Take a look at some options plays. Maybe the May 85 straddle. Also perhaps the May 90 call/May 80 put strangle. If you are bearish, maybe the May 80 puts are a safer bet so that you don't get squeezed higher on a short play.

Long Google.

2. Patience Is Being Rewarded

Paul Rubillo
10:27 A.M. EDT

So far, the plan to let the open guide us is keeping me from pulling the trigger. That said, traders should use today's highs in the UltraShort Real Estate ProShares(SRS Quote), the UltraShort Financials ProShares(SKF Quote), the Direxion Financial Bear 3X Shares(FAZ Quote) and UltraShort FTSE Xinhua/China 25 ProShares(FXP Quote) as an area to watch as we go through the rest of the trading day.

I am still concerned about having a short bias into today's close with Apple(AAPL Quote) and Qualcomm(QCOM Quote) earnings on deck. A break of Friday's lows in the SRS, SKF, FAZ and FXP would be the signal to cut your losses.

No positions.