Zero Extrinsic Hedged Back Spread (ZEEBHS) Options Trade

The Zero Extrinsic Hedged Back Spread (ZEEHBS) was created by Tony Rihan (@TFMtrades on Twitter; http://www.KISinvesting.com) and was presented on the tastytrade network. The trade essentially is a zero extrinsic long straddle with risk shifted to the downside. The trade wins with any up move or a crash to the downside outside the expected move.

The ZEEHBS consists of a bull back spread and hedged at 50% deltas. The youtube video at the below link walks through the trade setup and management. The example is shown with the S&P 500 but can be used for any index (NASDAQ, Russell, DOW) or any stock you are bullish on.

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