Synthetic Long Discount Alert: YIELDMAX UNIVERSE FUND OF OPTION INCOME ETFS $YMAX trading at a 16.19% discount for the 18-Jul-2025 expiration

Quantchabot has detected a new Synthetic Long Stock trade opportunity for YIELDMAX UNIVERSE FUND OF OPTION INCOME ETFS (YMAX) for the 18-Jul-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

YMAX was recently trading at $17.60 and has an implied volatility of 50.72% for this period. Based on an analysis of the options available for YMAX expiring on 18-Jul-2025, there is a 68.29% likelihood that the underlying will close within the analyzed range of $12.28-$26.54 at expiration. In this scenario, the average linear return for the trade would be 90.57%.

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 $18.00, which is already $0.40 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 $3.25 per share. The final position can be considered as having a discount of $2.85 per share over the underlying price of $17.60 for a 16.19% 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.