Even with the overall market down, specialty retailer and distributor of automotive replacement parts and accessories AutoZone (NYSE:AZO) has risen 20% this year.

For fiscal 2011, net income increased 15% to $849 million, while diluted earnings per share for the period increased 30.0% to $19.47 from $14.97. Last quarter, AutoZone beat Q4 earnings expectations with a 12% increase in earnings growth and a 4.5% increase in same-store sales. While this earnings growth seems impressive on the surface, it is important to note that the rate of earnings growth far outpaced revenue growth, meaning margins expanded at an unsustainable rate.

Given the market cap of about $13 billion, I find it difficult for a company this large to continue to find ways to create earnings growth without concomitant revenue growth. With a P/E ratio of 16.5, AZO trades at a premium to the overall market. I’m looking for a slight multiple contraction as well, along with slowing earnings growth. My six-month target on AZO is $286, based on $22 in earnings and a 13 multiple.

Based on AZO’s current market price of $327.61 and using a target price of $286, a target date of March 16, 2012, and $10,000 of investment capital, this is a great candidate for an intermediate-term options trade.

To play this with options, visit TradingBlock.com, create a free Instant Login and try the TradeBuilder feature. Input the ticker, target price and date, and investment amount, and you’ll see several ways to trade that include buying a March call spread, buying the stock, or using some more-advanced strategies.

Best of all, you can see a potential profit-and-loss outline for each strategy. If you set up an account, you can hit the “Trade” button on your preferred strategy and be on your way! Create your free login, and get access to these AZO option trading strategies by visiting the TradeBuilder here.