Earnings Play of the Day TXN 10.22.2012

TXN has an earnings report due out after the close today. Analysts are expecting mediocre returns as net income is expected to fall 24% from $711 million to $541.3. Revenue is expected to fall 2% to $3.39 billion. Texas Instrument chips, which were used in old iPads, will likely be replaced as Apple will design and manufacture their own in Taiwan. 

My Trade: Sell the OctWeekly 28-29 Call Spread for $0.50

Risk: $50 per one lot

Reward: $50 per one lot

Break even: $28.50