Amazon Stock Is Worth Much More Based on its Strong FCF - Good for Shorting Puts for Extra Income

Amazon (AMZN) stock has held up well since Feb. 1. with its Q1 results. Based on its strong FCF outlook, AMZN stock could be worth over one-third more. This is attractive to long investors who also short out-of-the-money (OTM) puts for income.

I discussed this in my March 8 Barchart article, “Amazon Stock is Still Very Undervalued and Shorting OTM Puts Makes Sense Here.” The article showed that the $170 strike price put option traded for $1.23 for expiration on March 28. AMZN stock closed at $180.38 on March 28, so the puts expired worthless.