A Poor Man's Covered Call Built to Survive a Big Move

A viewer says owning 100 shares of Amazon is too expensive and wants a poor man's covered call into earnings, without a big move blowing up the setup. Liz Dierking answers with a twist. Instead of a single long call, she builds the stock replacement leg as a Zebra, a zero extrinsic back ratio that buys two in the money calls and sells one to mimic 100 shares with almost no time value. Because that leg behaves like real stock, she sells a near term call against it just like a true covered call, so a gap higher into earnings does not break the position the way it can with a standard poor man's covered call. It is a real stock replacement for a fraction of the capital. None of this is a trade recommendation. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 The poor mans covered call question 00:16 Liz does it differently 00:29 Building the Zebra stock replacement 01:04 Why it replicates stock 01:26 Selling the earnings call against it 02:09 What a zero extrinsic back ratio is 02:19 Chris plays devils advocate 02:56 Why a big move does not break it 03:28 A stock replacement for less capital #tastylive #optionstrading #poormanscoveredcall #zebratrade #coveredcall #optionsstrategy #tastytrade #stockreplacement #optionseducation #confirmandsend tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. 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. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.