Synthetic Long Discount Alert: YIELDMAX MSTR OPTION INCOME STRATEGY ETF $MSTY trading at a 25.41% discount for the 18-Jul-2025 expiration

Quantchabot has detected a new Synthetic Long Stock trade opportunity for YIELDMAX MSTR OPTION INCOME STRATEGY ETF (MSTY) for the 18-Jul-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MSTY was recently trading at $29.36 and has an implied volatility of 103.02% for this period. Based on an analysis of the options available for MSTY expiring on 18-Jul-2025, there is a 68.29% likelihood that the underlying will close within the analyzed range of $13.76-$65.88 at expiration. In this scenario, the average linear return for the trade would be 105.58%.

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 $29.00, which is already $0.36 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 $7.10 per share. The final position can be considered as having a discount of $7.46 per share over the underlying price of $29.36 for a 25.41% 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.