No. of Recommendations: 1
Given the rosy picture for META and the current sideways performance of META over the past almost two years, there are two ways I can think of to get nice returns for this:
(1) DITM Calls (Deep in the Money), for some extra leverage. For example, the Jun/27 270 CALL is 54% ITM, 323/330 which gives an effective leverage of 1.78, and an effective margin rate of 7.31%
For longer dated ones, you still get roughly the same interest rate and leverage (margin rate creeps up, and the leverage creeps down).
(2) Cash Secured Puts: The Sept. 18 2026 585 META PUT is 37.05/41.15 (you can probably sell it for 38/share, and put up 547 cash per share), which profits as long as price stays above 547, and if the price stays above 585, then the option expires worthless and you make 38/547 = 6.94% for apprixmately two months (and then repeat each time).
What do you guys think?
--G