Domino's Pizza (DPZ) delivered strong positive free cash flow (FCF), but its FCF margin was slightly lower. But DPZ is still worth over $402 per share, almost one-third higher. Two plays are shorting out-of-the-money puts and put credit spreads.
DPZ closed at $303.09 on Thursday, Oct. 15, well off its Aug. 8 peak of $367.63. This is slightly below where it stood before the Oct. 13 Q3 earnings release ($310.90 on Oct. 12). However, DPZ is treading water near its 3-month lows and could spring higher over the year.