Airbnb Inc (ABNB) reported strong free cash flow (FCF) last week for Q1, including a 41% FCF margin over the trailing 12 months (TTM). Using a 3.3% FCF yield ABNB stock could be worth over 50% more at $225 per share. That makes shorting out-of-the-money (OTM) put options attractive here, especially for existing investors wanting additional income.
In morning trading on Monday, May 13, ABNB stock was trading at $148.31. This is from a recent low of $147.05 on May 9, after its Q1 results were released on May 8. As a result, value investors find ABNB stock appealing given its cheap valuation.
