Get Paid 9.0% to Buy INTU at a 30% Discount – Here’s How
At about $545.4 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.
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 353 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 from the digitalization of small businesses, makes it a resilient long-term compounder. Comfortable owning this ‘financial operating system’ for small businesses for 5+ years.
Competitive Advantage
We classify INTU’s economic moat as WIDE, with the primary source being Switching Costs
- Consistently raised prices on QuickBooks products (e.g., Plus plan +64% and Advanced plan +83% from 2020-2025).
- Maintains dominant market share of ~80% in small business accounting and 60-90% in consumer tax.
See Intuit Full Analysis.
Industry Tailwind
The industry tailwind is STRONG, with CAGR projection of 9.2% (Allied Market Research), 12.55% (Mordor Intelligence)
Secular Trend: Shift to SaaS/Cloud, Digitalization of SMBs, and Increasing Tax Complexity
Key Risks: Regulatory scrutiny regarding ‘free’ product advertising and potential long-term technological disruption from AI.
Financial Guardrails
Cash Generation: Positive Free Cash Flow
Balance Sheet: As of July 31, 2025, Intuit reported approximately $4.6 billion in cash and investments against $6.0 billion in total debt, indicating a healthy balance sheet and low bankruptcy risk.
Not comfortable with options or stock-specific trades? PORTFOLIOS are even better.
The Best Investors Think In Portfolios
Stocks soar and sink – the key is staying invested. A balanced portfolio keeps you in the market, boosts gains and reduces single stock risk
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.