Synthetic Long Discount Alert: PENUMBRA INC $PEN trading at a 33.81% discount for the 15-Oct-2027 expiration

Quantchabot has detected a new Synthetic Long Stock trade opportunity for PENUMBRA INC (PEN) for the 15-Oct-2027 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PEN was recently trading at $317.26 and has an implied volatility of 63.71% for this period. Based on an analysis of the options available for PEN expiring on 15-Oct-2027, there is a 68.28% likelihood that the underlying will close within the analyzed range of $174.47-$633.41 at expiration. In this scenario, the average linear return for the trade would be 170.66%.

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 $320.00, which is already $2.74 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 $110.00 per share. The final position can be considered as having a discount of $107.26 per share over the underlying price of $317.26 for a 33.81% 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.