Stock / Symbol: ZYNGA Inc / ZNGA
Price at trade post: $13.56
Option Strategy: [private_monthly]strangle[/private_monthly]
Reasoning:[private_monthly] While a Strangle is a low probability trade, we believe that ZNGA can move 12% or more on it's earnings announcement tomorrow afternoon. We'll look to close the trade this week. [/private_monthly]
Trade Details:[private_monthly]
BTO 2 ZNGA Mar12 14 calls
BTO 2 ZNGA Mar12 13 puts
for a net debit of $3.05 per contract (day order, limit order)
Requirements:
Cost/Proceeds $610
Option Requirement $0.00
Total Requirements $610.00
Estimated Commission $12.95
Max Risk: $610
Max Reward: unlimited
Profit Range: $0 - $10 & $17 + by Mar 16
Suggested Stop @: $13.50 (after earnings announcement on 2/14)
[/private_monthly]
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