Earnings Play of the Day STZ 10.4.2012

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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