Unusual Activity in Lyft Put Options Highlights Its Underlying Value

LYFT Inc (LYFT) put options today are showing large unusual activity. This may be because Lyft recently said it expects positive free cash flow in 2024. As a result, the underlying value of LYFT stock is now apparent. This put activity may be from short sellers as an income play.

I highlighted the upside potential in LYFT stock in a recent Barchart article: “Lyft Makes Positive Free Cash Flow and Expects This for 2024 - Could Lift LYFT Stock 25% Higher.” I wrote that after its earnings release on Feb. 13, the stock could be worth as much as $22.39 based on its free cash flow (FCF). At the time LYFT stock was at $17.91