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NTAP closed at 31.33 Fri and reports earnings Wed after the close. A big move on earnings is possible. Consequently, there may be an opportunity to make a net gain with Feb calls and puts.

It may be more likely NTAP will fall somewhat on earnings than bounce, since it rallied recently (see chart on page five in Chart Room). So, if NTAP bounces Mon, the Feb 32.5 puts may be bought below 1.80. If puts are bought and NTAP pulls-back 1/2 point, that may be an opportunity to buy Feb 30 calls, perhaps also below 1.80.

A small position should be bought first, in case NTAP continues to rise or fall, which will provide another buying opportunity. Three trading days before earnings may be enough time to take advantage of volatility. However, this is a high risk trade.