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Halftime—Chairman: Lions Gate Met With MGM

Lions Gate Entertainment has met with Metro-Goldwyn-Mayer to present a proposal to combine the two studios once MGM emerges from bankruptcy, Lions Gate Vice Chairman Michael Burns effectively said Wednesday.

Burns said executives are in New York City to meet with MGM. He then suggested the meeting may have already occurred, but declined providing further details on the matter.

"If we can make the right transaction, make an accretive transaction for our shareholders, that we would absolutely embrace that idea," Burns said. "We're very interested in the MGM transaction."

With a 33.5 percent stake in Lions Gate, billionaire Carl Icahn is the studio's largest shareholder and also a debt holder in MGM. Icahn had threatened a proxy battle in the past, but has recently advocated a merger between the two studios.

Lions Gate has scheduled its annual meeting for December 14, but Burns said he wouldn't wait until then to discuss the merger with Icahn.

"We would not wait to talk to Mr. Icahn about a potential MGM transaction," Burns said. "That would be an ongoing dialogue."

Brian Kelly, a "Fast Money" trader and founder of Kanundrum Capital, likes Lions Gate at current levels. As the company continues to fight legal battles, he appreciates that it's able to release good movies.

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S&P'S NEXT LEVEL OF RESISTANCE?

Listen up, bears.

If the Standard & Poor's 500 Index closes above the 1,230 level, Stuart Frankel's Steve Grasso thinks you might want to change your tune.

"With a close above 1,230, it's a vacuum up to 1,270," Grasso said. "If you're bearish, you have to rethink your position if we close above 1,230 in the S&P."

On the way down, Grasso said it appeared as though we were going to revisit a few key levels, including the 20-day moving average at 1,190 and the 200-week moving average at 1,192. On the upside, the resistance levels are 1,220 and 1,230.

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TRADING PRECIOUS METALS

After both gold and silver continued to hit new highs, the Chicago Mercantile Exchange on Tuesday increased the margin requirements for silver futures. Those trading silver on margin now have to pay a minimum of $6,500 per contract traded, a $1,500 per lot increase that makes it more difficult to speculate on silver prices.

From the floor of the CME, options trader Jon Najarian said took off roughly two-thirds of his shorts on the Silver exchange-traded fund after it made a 9 percent move to the upside Tuesday.

Speaking of precious metals, Trutina Financial's Patty Edwards still owns gold because she thinks it's become "one of the major currencies out there." Edwards said she'll hold onto gold until exchange rate and trade issues are resolved.

Brian Kelly, founder of Kanundrum Capital, recommends buying puts on your positions in precious metals because that gives you protection to the downside.

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CALL THE CLOSE

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With volatility being cheap, Najarian recommends buying puts as protections — just in case.

While Grasso remains a seller of the market, Kelly disagreed. Kelly would buy the market because "this is your chance to get in."

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Trader disclosure: On November 10, 2010, the day this video was recorded, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Jon Najarian owns (BJ) short calls. Jon Najarian owns (DG) short calls. Jon Najarian owns (BBY) short calls. Jon Najarian owns (CSCO) short calls. Jon Najarian owns (FFIV) short calls. Jon Najarian owns (LVS) short calls. Jon Najarian owns (NOV) short calls. Jon Najarian owns (VLO) short calls. Jon Najarian owns (BIDU) long calls spreads. Jon Najarian owns (HL) long calls spreads. Jon Najarian owns (AAP) long calls spreads. Steve Grasso owns (ASTM), (BA), (BAC), (BWC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE) and (PRST).

BRIAN KELLY
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital own (JEF)
Accounts managed by Kanundrum Capital own (TD)
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (CLF)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (GPRE)
Accounts managed by Kanundrum Capital own (JJG)
Accounts managed by Kanundrum Capital own (HD)
Accounts managed by Kanundrum Capital own (PCL)
Accounts managed by Kanundrum Capital own (XHB)
Accounts managed by Kanundrum Capital own (FCX)
Accounts managed by Kanundrum Capital own (JO)
Accounts managed by Kanundrum Capital own (EWH)
Accounts managed by Kanundrum Capital own (MCP)
Accounts managed by Kanundrum Capital own (MOT)
Accounts managed by Kanundrum Capital own (SWC)
Accounts managed by Kanundrum Capital own Euros
Accounts Managed By Kanundrum Capital own (POT) Calls
Accounts managed by Kanundrum Capital are short Japanese Yen

PATTY EDWARDS
Edwards owns (BA) for clients
Edwards owns (CSCO) for clients
Edwards owns (DIS) for clients
Edwards owns (F) for clients
Edwards owns (FFIV) for clients
Edwards owns (GLD) for clients
Edwards owns (GLW) for clients
Edwards owns (SLW) for clients
Edwards owns (TTM) for clients

STEVE GRASSO
Stuart Frankel & Co and it’s partners own (AAPL)
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)
Stuart Frankel & Co and it’s partners are short (MCD)
Stuart Frankel & Co and it’s partners are short (AAPL)
Stuart Frankel & Co and it’s partners are short (RHI)

JEFF EVENSON
Bernstein owns more than 1% of (CSCO), (GLW), (JNPR)
Bernstein currently makes a market in (BRCD) (CHKP), (CSCO), (FFIV), (JDSU), (PLCM), (CSCO), (GLW) were non-investment banking-securities related services clients of Bernstein in the past 12 months.
Bernstein intends to seek compensation for investment banking services from (BRCD), (CHKP), (CSCO), (FFIV), (GLW), (JDSU), (JNPR), (PLCM) in the next 3 months.

CNBC.com with wires. Reuters contributed to this report.

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