Last week, we discussed skip-strike butterflies on YHOO, and put on a paper trade. Today, we are looking at Gap Stores (GPS), and putting on a paper trade that is based on a neutral to bullish outlook.

Specifically:

• A review of last week
• What did we want YHOO to do?
• What did YHOO do?
• Time decay and expiration
• Taking a look at GPS
• Where is the underlying?
• What is the trading range?
• What is the outlook?
• Setting up the trade
• What is the maximum risk?
• What is the maxiumum upside?