Synthetic Long Discount Alert: BEYOND MEAT INC. COMMON STOCK $BYND trading at a 26.67% discount for the 15-Jan-2021 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for BEYOND MEAT INC. COMMON STOCK (BYND) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BYND was recently trading at $141.10 and has an implied volatility of 36.71% for this period. Based on an analysis of the options available for BYND expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $57.93-$368.02 at expiration. In this scenario, the average linear return for the trade would be 108.39%.

Upside potential: This synthetic long position offers the same potential benefits and liabilities as a long stock position, but at a discount due to the significant premium at-the-money puts are trading at over calls. In this case, the long call position is opened at a strike of $140.00, which is already $1.10 in the money. An out-of-the-money put at the same strike is sold to finance the call, resulting in a net credit of $36.60 per share. The final position can be considered as having a discount of $37.70 per share over the underlying price of $141.10 for a 26.72% total.

Downside risk: This discount is generally a sign of the stock facing considerable short pressure, and may indicate that the stock has become hard to borrow. However, if you have a long view of the underlying over this period, it could be a good opportunity to benefit from the upside at a major discount.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.


This is an automated post generated based on a market analysis of delayed data at 6/24/2019 10:51:34 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.