![]() This means that if an investor were to buy 100 shares at $16.34 for $16,340 and then sell the $180 strike price calls, the investor would receive $347 immediately. META calls - Barchart - $180 strike price - as of Aug. 30 call option $180 strike price (i.e., 10% over today's price) provides covered call investors an income play of $3.47 per contract. Their average income potential for one month out is over 2%.įor example, the table below shows that the Sept. Look at the OTM strike prices that are 10% away from today's price. The premium levels are high as investors seem to expect the stock to rise from here. Shorting out-of-the-money (OTM) covered calls and OTM short puts can provide substantial income with META stock. We can also use this to set strike price targets. This also means that the covered call income plays and the short put income option plays are very lucrative. Seeking Alpha says that 55 analysts have a $222.92 average price target. For example, Barchart reports that the mean price target on Wall Street is $234.45. This is actually less than analysts' targets. So, for example, if META trades at just 50% of this difference in valuation or a P/E of 19.2x, the stock could reach $214.66. That is a far cry from its 5-year average forward price-to-earnings (P/E) multiple of 23.69x, according to Morningstar. 23 morning) of $164.84), META trades for just 14.7x earnings going forward. according to Barchart, and $11.18 (42 analysts surveyed by Seeking Alpha). This means the stock now trades like a value stock and is attracting value investors given how cheap it is now.įor example, analysts now project that earnings per share (EPS) will be $9.78 in 2022, but are projected to rise by 14.3% to $11.15 in 2023. ![]() Its operating margin fell from 43% last year Q2 to just 29% this year.Īs a result, META stock is off over 50% YTD. Revenue in Q2 was down 1% YoY but operating earnings were off 32%. This article will describe this opportunity. This presents a unique opportunity for enterprising investors that sell short puts and calls to create income. Meta Platforms ( META), fka Facebook, has fallen out of bed this year. ![]()
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