Stocks

LYFT Stock Is Too Cheap — Shorting Puts and Buying Long-Dated Calls

This strategy could be a winner for 2025, given Lyft’s strong free cash flow

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*** I submitted this story to Illumination 7 days ago. They never got back to me, so I am publishing this myself on Jan. 9, 2025. *********

Lyft stock (LYFT) is now very cheap. It’s trading at a near-term low point. This article will discuss a strategy with an expected return (ER) of over +25% in the next year.

LYFT stock last 3 months — Barchart — Jan. 2, 2025

I’ve written two recent articles about this, including this one on Jan. 1, 2025:

Lyft Shows Unusual Call Options Activity - LYFT Stock Looks Cheap to Call Buyers

Before this, I did a deeper analysis in GuruFocus: