Synthetic Long Discount Alert: PENUMBRA INC $PEN trading at a 18.26% discount for the 17-Jun-2027 expiration

Quantchabot has detected a new Synthetic Long Stock trade opportunity for PENUMBRA INC (PEN) for the 17-Jun-2027 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PEN was recently trading at $326.64 and has an implied volatility of 36.95% for this period. Based on an analysis of the options available for PEN expiring on 17-Jun-2027, there is a 68.28% likelihood that the underlying will close within the analyzed range of $230.17-$505.04 at expiration. In this scenario, the average linear return for the trade would be 101.76%.

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 $330.00, which is already $3.36 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 $63.00 per share. The final position can be considered as having a discount of $59.64 per share over the underlying price of $326.64 for a 18.26% 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.