Tripadvisor Inc. (TRIP) is currently trading at a 70% discount to its conservative intrinsic value of over $35 per share, driven by its valuable asset portfolio. The recent entry of activist investor Starboard onto the board and the move to a single-class share structure have removed governance concerns, setting the stage for potential strategic spinoffs or asset sales. Instead of a traditional buy-and-hold approach during uncertain turnaround periods, the investment thesis favors selling deep out-of-the-money cash-secured puts to generate a targeted 21%+ annualized yield with strong downside protection, aiming to preserve capital while benefiting from the undervaluation. This strategy reflects a disciplined, risk-managed approach to unlocking value in TRIP shares.
