Carnival Corp Stock Is Too Cheap - Short Out-of-the-Money Puts and Calls for Income

Carnival Corp (CCL) stock remains deeply undervalued after its recent quarterly strong free cash flow and FCF margins. One way to play this for existing investors is to short OTM puts and calls as an income play.

CCL stock is at $17.33 in morning trading on Tuesday, July 30. This is down 9.6% from a recent high of $19.18 on July 16. That drop is much less than many tech stocks.