Domino’s Pizza Inc. is set to release its third-quarter financial results on Tuesday, October 13, before market open. Although the restaurant chain’s stock price recovered to $309.36 following its September low of $292.14, it remains well below its August peak of $367.63.

Analysts view the company’s shares as an attractive investment opportunity due to its strong free cash flow (FCF) margins. According to a consensus survey of 30 analysts on Yahoo! Finance, the average target price stands at $373.44, implying a 20.7% potential upside. Furthermore, valuations assuming a 13% FCF margin next year project a market cap of $13.78 billion, or $416.71 per share—34.7% above its current $10.23 billion market valuation.

Given this fundamental undervaluation, options strategies involving short out-of-the-money puts emerge as an effective approach to trade DPZ stock ahead of the announcement. Specifically, selling the $290 strike put expiring November 20 offers a 2.62% monthly yield with a 71.7% probability of success, while the generated premium can help fund long-term call positions.

For investors seeking lower collateral requirements, a put credit spread ($290/$280) provides a viable alternative. This strategy captures a net credit of $240 per contract on just $1,000 in required collateral, yielding a high expected return provided the stock remains above $287.60 following the earnings report.