Get Paid 9.0% to Buy INTU at a 30% Discount – Here’s How
At about $547.69 a share, Intuit (INTU) is trading about 32% below its 52W high.
Do you think INTU stock is a good long-term bet at current levels? What about at a 30% discount at about $380 per share? If you think that is a steal, and have some cash ready to go, here is a trade.
9.0% annualized yield at 30% margin of safety, by selling Put Options.
- Sell a long-dated Put option expiring 1/15/2027, with a strike price of $380
- Collect roughly $1,850 in premium per contract (each contract represents 100 shares)
- That’s about 5.0% annualized yield on the $38,000 you’re setting aside for the possibility of buying the stock
- This cash parked in a savings or money market account will earn an extra 4.0%, taking total yield to 9.0%
- And you give yourself a chance to buy INTU stock at deep discounted price of $380
However, this is not the only stock strategy in town. Trefis High Quality Portfolio is a sophisticated framework designed to reduce stock-specific risk while giving upside exposure.
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Possible Trade Outcomes: You Win Either Way
| Stock Price Outcome | What It Means For You |
|---|---|
| INTU stays above $380 | You keep the full $1,850 premium – 4.9% extra income over the next 358 days on cash that might otherwise earn you 4.0% or less. You never buy the stock and simply walk away with the cash. |
| INTU closes below $380 | You’ll be obligated to buy 100 shares at $380. But thanks to $1,850 premium, your effective cost basis is just $361.5 per share – a roughly 34% from current level. |
But to hold this trade with conviction, you want to see long term upside in the stock. Because if it comes to it, you want to be excited about buying the stock cheap.
First, you want fundamentals to check out. For details, see Buy or Sell INTU Stock or check Intuit Investment Highlights
Second, you want to better understand competitive advantage and industry tailwinds. Below is what specifically gives us the conviction.
Why Hold INTU Stock Long-Term
Intuit’s wide moat, driven by high switching costs and a dominant market position, combined with a strong secular tailwind in the digitalization of finance for small businesses and consumers, makes it a resilient long-term compounder. Even in a market downturn, the essential nature of its products should provide a stable demand base, making us comfortable owning the stock for 5+ years if assigned.
Competitive Advantage
We classify INTU’s economic moat as WIDE, with the primary source being Switching Costs
- Intuit has consistently raised prices for its QuickBooks products, with the Plus plan increasing by over 64% and the Advanced plan by 83% over five years (2020-2025), indicating strong pricing power. [5]
- High switching costs are evident as customers and accountants are deeply embedded in the QuickBooks ecosystem, making it difficult and costly in terms of time and resources to migrate data and retrain on a new platform. [20]
- QuickBooks holds a dominant market share, accounting for nearly half of the accounting software market, which reinforces its position as the industry standard and increases the network effect. [14]
- The brands ‘QuickBooks’ and ‘TurboTax’ are widely considered the default standards in their respective categories for small businesses and individual tax preparation. [16, 21]
See Intuit Full Analysis.
Industry Tailwind
The industry tailwind is STRONG, with CAGR projection of 10.1% (Source: Grand View Research)
Secular Trend: Shift to SaaS
Key Risks: Regulatory changes to tax laws and potential for technological disruption from AI are the primary threats. [11, 39]
Financial Guardrails
Cash Generation: Positive Free Cash Flow
Balance Sheet: As of July 31, 2025, Intuit reported a strong cash and investments balance of approximately $4.6 billion against total debt of $6.0 billion, indicating a healthy balance sheet and low bankruptcy risk. [2]
Not comfortable with options or stock-specific trades? PORTFOLIOS are even better.
Portfolios Beat Stock Picking
Single stocks swing wildly but staying invested matters. A well built portfolio keeps you invested, captures upside and softens the blows from individual stocks
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.