
Chewy Inc. (CHWY) stock is down after reporting strong Q2 revenue and free cash flow (FCF) growth and FCF margins on Sept. 10. As a result, CHWY looks undervalued here by at least 15%-16%. One way to play it is to short out-of-the-money put options.
CHWY is down to $35.13 in midday trading on Friday, September 12. This is after it peaked at $42.33 on September 5, before its results were released.