Meta Platforms Put Options Have High Premiums - Ideal to Short as an Income Play

Meta Platforms (META) stock has done well since its earnings release. Its out-of-the-money (OTM) put options still have high premium levels. This is ideal for short-sellers as an income play, especially for existing shareholders.

I described this trade in my Feb. 23 Barchart article, “Shorting META Puts for Income Makes Sense for Shareholders Given The High Premiums.” I recommended selling short the $465 strike price put option for expiration on March 15, which was 3 weeks away. Since META stock closed at $484.10, this put option expired worthless.