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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Morning Prep

By Ken Wolff
06/18/09 8:41 a.m.

The PowerShares QQQ Trust(QQQQ Quote) is moving up a bit after the jobless claims numbers came in about in line. After some initial weakness yesterday, buyers came in just under QQQQ $35.50, and we popped nicely to $36.20. We touched the uptrend line on the daily chart, and buyers came in.

If the market is going to begin another leg up, we should get about 10 to 20 cents in selling at the open, then buyers will come in earlier than yesterday. I think we have a 70% chance of that occurring. The percentages are in favor of the bulls today.

No positions

S&P Pair Trade

By Timothy Collins
06/18/2009 10:52 a.m.

This morning, we've been pair trading options on the SPDR(SPY Quote) with the ProShares UltraShort S&P 500(SDS Quote).

First, we are going long the SDS June 57 puts, then we are shorting the SPY June 91 calls in a 4-to-5 ratio (long four SDS puts while shorting five SPY calls). The target for this is a net credit on the trade of at least 10 cents. Currently, the SDS can be gotten bought for 1.55, while shorting the SPY for 1.33. This is a bullish trade.

Positions: Long SPY & SDS puts, short SDS and SPY calls