The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (

Top Gun Options

) --

Top Gun Options

released this Advanced Trade Alert from Doug last night to the traders in the Advanced Trade Alert service and I wanted to pass this potentially profitable trade on to you as well.

Strategic Mindset

: Market Neutral

Target

: BWLD Trading @ $67.03

Commit Criteria

:

Buffalo Wild Wings

(BWLD)

Implied Volatility should be rising as BWLD approaches its earnings announcement on Feb. 7. I will attempt to ride this increase with a strangle on the March expiration options.

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Tactic

: Opening 10 BWLD March 2012 65/70 Strangle @ $6.28 Debit

Tactical employment

:

Buying to Open 10 BWLD Mar 2012 70 Calls

Buying to Open 10 BWLD Mar 2012 65 Puts

As a strangle

For a net debit of $6.28 (10 @ $628 for a total of $6,280.00)

Maximum Gain: Unlimited

Maximum Loss: $6,280.00 max

Mid-Course Guidance

: I will be watching for IV changes and major price movements in BWLD as we get closer to the earnings announcement on 2/7.

Profitability Target

: I would like this trade to go up 30% to a position price of $8.16.

Exit tactics

: Stop Loss of 20% -- a position price of $5.02. Profit Target of 30% -- a position price of $8.16

Time Exit

: I will not hold this position in the Advanced Model Portfolio over the earnings announcement. In all cases I will exit before the end of trading on Feb. 6.

Firing Line

: 2012 is going to be a great year to trade options. See you today in Doug's

Advanced Live Trade Brief!

Happy hunting and make sure you hedge!

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.