It turned out to be a rather calm week both for my trading and in the markets. A bit down but nothing too serious, and certainly not as bad as some expected given the continuing European crisis. In the tech space, it was a very interesting week with earnings for a few companies such as Yahoo ($YHOO), Microsoft ($MSFT) and Google ($GOOG). The coming week will be a huge one though with Apple ($AAPL) about to announce amid a lot of speculation. It should be VERY interesting. Today, I am back with a new trade! Here are the numbers for that trade:

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Long Zynga (ZNGA)

I’ve discussed Zynga quite a bit as a great play on Facebook ($FB), it’s been a tough company to figure out as there isn’t that much news being released and it’s unclear how things are going with increased competition from other gaming companies. I do think that if it can do anywhere close to what most expect, it will prove to be a great trade as its forward P/E is almost identical to Blue Nile’s, which is crazy on many different levels.

Short Blue Nile ($NILE)

Ahh Blue Nile, the stock I love to hate. I’ve been short over and over and over, almost every time with great success, especially this year. The company is clearly a lot less overvalued than it was a few months ago as its fundamentals have more or less stayed the same while its price has declined. These days, I wouldn’t short NILE against any stock but Zynga (ZNGA) is a good candidate given their drastically different growth rates and opportunities but comparable P/E ratios.

Disclosure: No positions on NILE or ZNGA