Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Synthetic Long Stock trade opportunity for KENSIGNTON CAPITAL ACQUISITION CORP (QS) for the 17-Dec-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. QS was recently trading at $68.09 and has an implied volatility of 110.73% for this period. Based on an analysis of the options available for QS expiring on 17-Dec-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $23.28-$200.08 at expiration. In this scenario, the average linear return for the trade would be 64.21%. 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 $70.00, which is already $1.91 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 $12.80 per share. The final position can be considered as having a discount of $10.89 per share over the underlying price of $68.09 for a 15.99% 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.