Synthetic Long Discount Alert: ARBOR REALTY TRUST $ABR trading at a 10.12% 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 $9.34 and has an implied volatility of 44.85% 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 $5.64-$17.70 at expiration. In this scenario, the average linear return for the trade would be 73.18%.

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 $10.00, which is already $0.66 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 $1.61 per share. The final position can be considered as having a discount of $0.95 per share over the underlying price of $9.34 for a 10.12% 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.