ZEBRA Options Strategy

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Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request.

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[deanneidholt]

I have been watching Liz and Jenny for about 6 years now..they are excellent traders and teachers..I love the tastytrade platform as well..well done. Trading in Texas

[imnokasparov]

What's not discussed is that you lose twice as much on the downside (until the stock hits the long strikes) as just owning the stock.

[richardkim]

Very clever strategy. Negating the theta decay of the long call/put for a 1 to 1 price movement. Capital efficient.

[EarleeRanch]

Thanks for helping to explain another tool for our toolbox

[Fedebello]

Wow! You two are really good at teaching! I really love your "Liz, guide me through approach" to show how to apply theory to practice. Awesome video. Thank you so much. I'd love to see you both go through your favorite earning period strategies. If you have one already (which I couldn't find) would you mind posting a link in the reply? That would be highly appreciated. Keep up the great work and looking forward to see more videos of yours.

[jimzeng]

If you use the total debit of the Zebra to buy a deep in the money option that costs the same, the risk graph looks about the same. But the Zebra method has a steeper curve on the down side.

[robertdryden]

I really like Liz & Jenny, but the music accompanying the video is so loud and distracting, I can't focus on their instructions. Too bad.

[richardberman]

I don't understand the point of this. I checked it with AAPL and to use this strategy in calls in the Feb expiration cost about 2100 dollars, OTOH, to buy two 50 delta calls cost about 1500 and has an initial 100 delta which escalates as the price goes up. The downside is less, the upside is more and it costs less. Am I missing something?

[AtifKhan-begw]

I’m trying to find the ratchet video that you guys mentioned. Can you point me in the right direction?

[garyc]

Please tell us how to use zebra for covered call trades

[Po]

Ok I did some more digging to understand this more. I had mistaken this as having zero theta decay, but it's actually zero extrinsic value. Hm so in theory then, can you create a ZEBRA but perhaps you only want to mimic holding 25 shares of a stock? it doesn't always need to be 100 shares right? Because perhaps a 100 shares replacement ZEBRA is too expensive and I can only afford to mimic 25 shares?

[marceloflores]

That's a great estrategy, guys, thank you for sharing that knowledge.

[chaslp]

Sorry, I tuned out halfway thru. I couldn't stand the unnecessary, annoying, distracting music competing with the content. Why do creators think this is an enhancement?

[דודסולומון-טמ]

HELLO
THE EXTRINSIC VALUE OF 2 LONG OPTIONS IF Is NOT EQUAL TO THE EXTRINSIC VALUE OF THE SELL OPTION SHOULD IT BE GREATER OR LESS and why?
THANK YOU

[realguitarshredder]

This at 720 resolution.. a bit hard to see the small numbers clearly. but awesome video.

[OPTION_]

Great tool I like the way the short call or put, washes away the extrinsic value, this will definitely allow for you to have a pure stock replacement… that will move dollar for dollar…. Pure genius!!!!

[gilB_]

Great video explanation! i Love watching your LIZ & JNY show and watch every chance i get

[ricomajestic]

Any advantages to buying a deep ITM zebra compared to an ATM Zebra like these ladies are showing?

[ricomajestic]

How is this better than a Deep ITM call that also has very little extrinsic value and less risk than a Zebra?

[OurNewestMember]

My objection is that for equities you should consider adding a short OTM put for the call zebra, to pay for the higher extrinsic in the calls due to iv skew (but you could move the itm calls closer to ATM to compensate)

But i don't know if IRA margin treats the full spread like a butterfly or ends up having a naked put in the margin requirement.

Anyway, i don't fully appreciate the emphasis on this as a stock replacement, but I do see this as an excellent way to add short-term gamma low-cost, but these do need to be managed. That short can turn into a gamma Storm if not neutralized.