
Investors who have shorted out-of-the-money puts in Charles Schwab (SCHW) stock have been making good money. SCHW stock is still cheap based on earnings, making this a good play for investors.
I have written several articles about this trade in the past months, including this on May 14, “Schwab Stock Is Still Cheap, Making Short Puts A Very Popular Income Play.” In that article, I pointed out that SCHW stock could be worth between $62.94 and $80.65 per share. This is based on its historical value metrics.