Synthetic Long Discount Alert: ARBOR REALTY TRUST $ABR trading at a 12.30% discount for the 15-Jan-2027 expiration

Quantchabot has detected a new Synthetic Long Stock trade opportunity for ARBOR REALTY TRUST (ABR) for the 15-Jan-2027 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ABR was recently trading at $13.62 and has an implied volatility of 36.56% for this period. Based on an analysis of the options available for ABR expiring on 15-Jan-2027, there is a 68.28% likelihood that the underlying will close within the analyzed range of $8.89-$24.65 at expiration. In this scenario, the average linear return for the trade would be 96.81%.

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 $15.00, which is already $1.38 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 $3.06 per share. The final position can be considered as having a discount of $1.68 per share over the underlying price of $13.62 for a 12.30% 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.