CHONGQING, CHINA – JANUARY 22: In this photo illustration, a smartphone displays the logo of Meta Platforms, Inc. (NASDAQ: META), the U.S.-based technology company that owns Facebook, Instagram and WhatsApp, in front of a screen showing the company’s latest stock market chart on January 22, 2026, in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)
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With Meta Platforms (NASDAQ: META) trading at approximately $659 per share, it is currently about 16% lower than its 52-week high.
Do you believe that META stock is a solid long-term investment at its current price? How do you feel about buying it at a 30% discount for around $460 per share? If you see that as a bargain and have some funds ready, consider this trading opportunity.
An annualized yield of 8.4% with a 30% margin of safety by selling Put Options.
- Sell a long-term Put option that expires on 1/15/2027, with a strike price of $460.
- Receive approximately $1,965 in premium for each contract (each contract corresponds to 100 shares).
- This creates an annualized yield of about 4.4% on the $46,000 set aside for the possibility of buying the stock.
- This cash, placed in a savings or money market account, will accrue an additional 4.0%, bringing the total yield to 8.4%.
- Moreover, you offer yourself the opportunity to purchase META stock at a significantly reduced price of $460.
However, this isn’t the only stock strategy available. Trefis High Quality Portfolio provides a sophisticated framework to mitigate stock-specific risk while offering upside exposure.
Possible Trade Outcomes: You Win Either Way
Possible Trade Outcomes
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However, to maintain conviction in this trade, you’ll want to perceive long-term potential in the stock. Because should it come to that, you’ll want to feel enthusiastic about purchasing the stock at a reduced price.
MORE FOR YOU
Firstly, you should verify that the fundamentals are sound. For further details, see Buy or Sell META Stock or review Meta Platforms Investment Highlights.
Secondly, you should aim to deepen your understanding of competitive advantages and industry tailwinds. Below is what specifically generates our confidence.
Reasons to Hold META Stock for the Long Term
Meta’s established network effects and extensive user base create a strong competitive edge. The company is at the forefront of two significant growth trends: the continuing transition of advertising to digital platforms and the evolution of the metaverse. Its robust financial position enables aggressive investments in future growth drivers such as AI and virtual reality. We are comfortable holding META long-term, as its core operations are highly profitable, and its future growth potential is substantial, even if the stock price were to experience declines in the short to medium term.
Competitive Advantage
We categorize META’s economic moat as WIDE, primarily driven by the Network Effect.
- Successfully raised ad prices without notable advertiser turnover, indicating inelastic demand.
- High switching costs for advertisers due to deep integration within its ecosystem (Facebook, Instagram, Threads) and advanced, data-driven targeting tools that are challenging for competitors to duplicate.
- Maintains a prominent market share in the digital advertising sector, with Facebook and Instagram serving as default platforms for numerous businesses.
Refer to Meta Platforms Full Analysis.
Industry Tailwind
The industry tailwind is STRONG, with a CAGR projection of 11.0% – 15.4% for Digital Advertising and approximately 40%+ for the Metaverse (Source: Grand View Research, MarketResearch.com, KBV Research, Precedence Research).
- Secular Trend: Digitalization of Advertising and Emergence of Immersive Social Experiences
- Key Risks: Regulatory pressures stemming from antitrust and data privacy lawsuits globally and technological disruption from competing platforms.
Financial Guardrails
- Cash Generation: Positive Free Cash Flow
- Balance Sheet: Strong net cash position with minimal debt, granting significant financial flexibility for investments and returns to shareholders. No discernible bankruptcy risk. Look at Meta’s Financials for more details.
Uncomfortable with options or stock-specific trades? PORTFOLIOS may be even better.
A Multi-Asset Portfolio Provides Safer, Smarter Growth
Individual selections can be volatile, but diversified assets will balance each other out. A multi-asset portfolio assists you in staying the course, capturing upside, and mitigating downside risk.
The asset allocation framework developed by Trefis’ Boston-based wealth management partner produced positive returns during the 2008-09 financial crisis when the S&P declined by more than 40%. Our partner’s strategy currently includes Trefis’s High Quality Portfolio, which has consistently outperformed its benchmark, including all three indices – the S&P 500, S&P mid-cap, and Russell 2000.