Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Synthetic Long Stock trade opportunity for BLACKSTONE MORTGAGE TRUST INC (BXMT) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. BXMT was recently trading at $31.40 and has an implied volatility of 25.91% for this period. Based on an analysis of the options available for BXMT expiring on 19-Jan-2024, there is a 68.27% likelihood that the underlying will close within the analyzed range of $21.91-$45.80 at expiration. In this scenario, the average linear return for the trade would be 45.86%. 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 $32.00, which is already $0.60 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 $3.75 per share. The final position can be considered as having a discount of $3.15 per share over the underlying price of $31.40 for a 10.03% 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.