Synthetic Long Discount Alert: VERTICAL AEROSPACE LTD $EVTL trading at a 10.65% discount for the 15-Jul-2022 expiration

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Synthetic Long Stock trade opportunity for VERTICAL AEROSPACE LTD (EVTL) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EVTL was recently trading at $7.28 and has an implied volatility of 97.49% for this period. Based on an analysis of the options available for EVTL expiring on 15-Jul-2022, there is a 68.30% likelihood that the underlying will close within the analyzed range of $3.91-$13.57 at expiration. In this scenario, the average linear return for the trade would be 49.40%.

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 put position is opened at a strike of $7.50, which is already $0.22 in-the-money. However, its sale more than offsets this moneyness and the cost of the long call that the trade results in a net credit of of $1.00 per share. The final position can be considered as having a discount of $0.78 per share over the underlying price of $7.28 for a 10.65% 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.

StockTwits Trending Alert: Trading recent interest in NU HOLDINGS LTD $NU

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Put Spread trade opportunity for NU HOLDINGS LTD (NU) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NU was recently trading at $7.36 and has an implied volatility of 56.61% for this period. Based on an analysis of the options available for NU expiring on 18-Feb-2022, there is a 34.32% likelihood that the underlying will close within the analyzed range of $7.36-$8.23 at expiration. In this scenario, the average linear return for the trade would be 23.78%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, NU HOLDINGS LTD was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.

Trade approach: The recent sentiment change in NU on StockTwits appears to be moderately positive, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bullish strategy could prove effective if the sentiment ultimately turns out to drive trading.

Upside potential: Using this bullish strategy, the trade would be profitable if NU HOLDINGS LTD closed at or above $7.20 on 18-Feb-2022. Based on our analysis, there is a 57.82% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

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