Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Synthetic Long Stock trade opportunity for NEWEGG COMMERCE INC (NEGG) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. NEGG was recently trading at $29.36 and has an implied volatility of 145.94% for this period. Based on an analysis of the options available for NEGG expiring on 18-Feb-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $9.65-$89.46 at expiration. In this scenario, the average linear return for the trade would be 51.04%. 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 $30.00, which is already $0.64 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 $3.80 per share. The final position can be considered as having a discount of $3.16 per share over the underlying price of $29.36 for a 10.76% 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.