Friday, September 5, 2014

2014/09/05 AZO Butterfly into Sep 22 earnings (BMO) with 550 pinning potential

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. 




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