AZU Butterfly
Speculative Long Trade Setup into earnings with Fibonacci Support Cluster in the 1h Chart:
- could push up into earnings on Monday, Sep 22 (BMO)
- pinning potential at the round number of 550, which is a common Fibonacci target in both, the 1h and daily charts
My Trade Strategy is to buy a 550 butterfly which expires on Friday Sep 19, the last trading day before the Monday Sep 22 earnings announcement: BUY BUTTERFLY AZO SEP14 +540/ -2*550/ +560 CALL @2.20. Idealy AZO would pin at 550 where the max profit of 1550/contract would be realized. The Risk/Reward of the trade is a very favorable 440/1550.
