Synthetic Long Discount Alert: PENUMBRA INC $PEN trading at a 32.30% discount for the 16-Apr-2027 expiration

Quantchabot has detected a new Synthetic Long Stock trade opportunity for PENUMBRA INC (PEN) for the 16-Apr-2027 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PEN was recently trading at $324.67 and has an implied volatility of 85.06% for this period. Based on an analysis of the options available for PEN expiring on 16-Apr-2027, there is a 68.29% likelihood that the underlying will close within the analyzed range of $184.92-$593.60 at expiration. In this scenario, the average linear return for the trade would be 160.43%.

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 $320.00, which is already $4.67 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 $100.20 per share. The final position can be considered as having a discount of $104.87 per share over the underlying price of $324.67 for a 32.30% 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.