Synthetic Long Discount Alert: GETTY IMAGES HOLDINGS INC $GETY trading at a 11.15% discount for the 19-May-2023 expiration

Quantchabot has detected a promising Synthetic Long Stock trade opportunity for GETTY IMAGES HOLDINGS INC (GETY) for the 19-May-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GETY was recently trading at $5.96 and has an implied volatility of 93.22% for this period. Based on an analysis of the options available for GETY expiring on 19-May-2023, there is a 68.30% likelihood that the underlying will close within the analyzed range of $3.18-$11.68 at expiration. In this scenario, the average linear return for the trade would be 60.39%.

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 $5.00, which is already $0.96 in the money. An out-of-the-money put at the same strike is sold to finance the call, resulting in a net debit of $0.30 per share. The final position can be considered as having a discount of $0.66 per share over the underlying price of $5.96 for a 11.15% 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.