Chewy, Inc. (CHWY) stock has moved up from a recent trough, but analysts have significantly higher price targets. Its free cash flow (FCF) and FCF margins are expected to remain strong. People love spending money on their pets. As a result, shorting OTM puts and buying ITM long-expiry calls work here.
CHWY is currently at $37.00, up from a recent low of $35.11 on September 10. But, it's still off from a peak of $42.33 on Sept. 5. My analysis is that CHWY could be worth +16% more at almost $43, based on its FCF.
