This post was just published on ZYX Buy Change Alert.

DFS’s board declared a cash dividend of 14c per share of common stock, an increase of 40%, payable on Jan. 17, 2013, to stockholders of record at the close of business on Jan. 3, 2013.

DFS reports Q4 EPS $1.07, consensus $1.13.  DFS also reports Q4 revenue net of interest expense $2.0B, consensus $1.97B. Reports Q4 provision for loan losses 338M.

DFS reports Q4 net charge-off rate 2.29%.  Reports credit card loan delinquencies over 30 days past due increased 5 basis points sequentially to 1.86%.  Q4 total loans, credit card loans and Discover card sales volume all grew 6% from prior year.  Reports Q4 book value per share $19.55.

As a reminder this is for aggressive traders only.  Conservative investors should stay away from this trade at this time.

We advise against using near dated options for this trade.

What To Do Now?

Those in the position may continue to hold.

Those not in the position may  initiate a 1o% tranche in the zone of $37.07 to $38.05.