Meta Platforms Is Too Cheap Based on Its FCF Margins - Shorting OTM Puts Is an Attractive Play

Meta Platforms (META) stock is too cheap here based on its stellar free cash flow (FCF) margins after its recent drop. As a result, its out-of-the-money (OTM) put option premiums are very high, making them attractive to short sellers for income and good entry points.

META stock fell dramatically after its April 24 Q1 earnings release to $443.29 on Friday, April 26. This was down from a recent peak of $527.34 on April 4 and $493.50 the day before the earnings came out.