On grade the trade we test the trading aptitude of some of the most promising business students in the nation. This week they’re from Georgia Tech, Emory, and Boston University.
Get ready – school’s in session.
Our business school students have been given the questions in advance, and have 30 seconds to answer.
Grad #1: Erin from the College of Management at Georgia Tech.
Erin is currently an intern at Credit Suisse.
Here’s the scenario: Oil goes to $80 a barrel. What are you buying, what are you selling as this scenario unfolds?
Erin is buying the energy Energy Select Sector SPDR (XLE) as well as a drilling company and TIPS as a hedge against inflation. She’s also buying Evergreen Solar (ESLR) and Toyota (TM) and selling American car companies such as Ford (F) and GM (GM) as well as travel companies such as Continental (CAL) and Hertz (HTZ).
Guy Adami gives Erin an “A-“
Grad #2: Dang from the Roberto C Goizueta Business School at Emory University
Dang is organizing a class trip to visit Warren Buffet.
Here’s the scenario: The FCC approves the Sirius/XM merger. What are you buying, what are you selling as this scenario unfolds?
Dang is buying XM (XMSR) and shorting Sirius (SIRI). He’s go long Clear Channel (CCU) and Apple (AAPL).
Jeff Macke gives Dang a “B”.
Grad #3: Matt from Boston University School of Management
Matt is Vice President of the finance club.
Here’s the scenario: A private equity firm buys MGM. What are you buying, what are you selling as this scenario unfolds?
Matt is buying Boyd Gaming (BYD). He’s also buying International Game Technology (IGT), WMS Industries (WMS), and BYI (Bally Technology). He’s putting a straddle on Trump (TRMP) and he’s selling Youbet.com (UBET).
Jon Najarian gave Matt a “B-“ because he didn’t mention Kirk Kerkorian, Las Vegas or Macao.
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Trader disclosure: On June 29 2007, the 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 (RIMM); (AAPL), (DIS), (UNH), (TOL), (JNPR), (KOMG), (ZQK), (ISRG), (ITG), Pete Najarian Owns (BIDU), GE Is The Parent Company Of CNBC