Synthetic Long Discount Alert: USA RARE EARTH INC. CLASS A $USAR trading at a 21.29% discount for the 19-Dec-2025 expiration

Quantchabot has detected a new Synthetic Long Stock trade opportunity for USA RARE EARTH INC. CLASS A (USAR) for the 19-Dec-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

USAR was recently trading at $12.26 and has an implied volatility of 114.71% for this period. Based on an analysis of the options available for USAR expiring on 19-Dec-2025, there is a 68.29% likelihood that the underlying will close within the analyzed range of $4.99-$31.89 at expiration. In this scenario, the average linear return for the trade would be 90.50%.

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 $12.00, which is already $0.26 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 $2.35 per share. The final position can be considered as having a discount of $2.61 per share over the underlying price of $12.26 for a 21.29% 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.