Synthetic Long Discount Alert: DRAGANFLY INC. COMMON SHARES $DPRO trading at a 17.06% discount for the 21-Jan-2028 expiration

Quantchabot has detected a new Synthetic Long Stock trade opportunity for DRAGANFLY INC. COMMON SHARES (DPRO) for the 21-Jan-2028 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DPRO was recently trading at $12.66 and has an implied volatility of 96.02% for this period. Based on an analysis of the options available for DPRO expiring on 21-Jan-2028, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.23-$58.90 at expiration. In this scenario, the average linear return for the trade would be 108.63%.

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 $12.50, which is already $0.16 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 $2.00 per share. The final position can be considered as having a discount of $2.16 per share over the underlying price of $12.66 for a 17.06% 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.