Synthetic Long Discount Alert: YIELDMAX MSTR OPTION INCOME STRATEGY ETF $MSTY trading at a 48.86% discount for the 21-Jan-2028 expiration

Quantchabot has detected a new Synthetic Long Stock trade opportunity for YIELDMAX MSTR OPTION INCOME STRATEGY ETF (MSTY) for the 21-Jan-2028 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MSTY was recently trading at $13.79 and has an implied volatility of 74.27% for this period. Based on an analysis of the options available for MSTY expiring on 21-Jan-2028, there is a 68.27% likelihood that the underlying will close within the analyzed range of $4.88-$46.16 at expiration. In this scenario, the average linear return for the trade would be 248.17%.

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 $14.00, which is already $0.21 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 $6.95 per share. The final position can be considered as having a discount of $6.74 per share over the underlying price of $13.79 for a 48.86% 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.