Earnings Play of the Day STZ 10.4.2012

Revenue has beat estimates for the last three out five quarters, however the last two out ofthree were lower than estimated. Annual revenues dropped around 18% from 2011 to 2012 but it is estimated to continue growing $100 million a year into 2015. The largest open interest position is in the Apr-13 32.5 Call, followed by the Nov 27.5 Put and the Nov 30.0 Call. The Oct ATM Strangle is implying a 9.3% move. 

  

My trade: Buy the Jan STZ 40-45-50 Call Fly for $0.30.

My reward: $4.70

My risk: $0.30

My break even $40.30 and $49.70