ZBIG Strategy Update: Rolling Forward to Protect Profits & How to Explain
By Derek Moore
Why did we opportunistically decide to rebuild ZBIG 2025 vintage accounts early?
- Protect Profits
- Reset Their Buffers
- Reposition For Future Growth
You may have noticed over the past month and a half ZEGA has been resetting positions. What this means is we close out the existing option positions and rebuild rolling out to the furthest available December 2027 expiration. The 2025 options were going to expire anyway in December, but by doing it early, it still allows for growth but reduces the amount of profits that would be given back in the event of a significant pullback. For the option geeks out there, we ‘reduced our delta exposure’.
Is ZEGA calling for a significant pullback?
No, we believe in staying invested but being hedged or buffered to eliminate the need to TRY and time markets.
For advisors and their clients, ZBIG captured the market up moves all while having a buffer to the downside. For those of you with expiring options in 2026 or 2027, no adjustments have been made to those builds. Our trading team of course continues to monitor the accounts for any refinements that we feel would benefit your clients.
ZBIG comes in 5 different versions:
- ZBIG Leveraged
- ZBIG Standard
- ZBIG IRA
- ZBIG Treasury
- ZBIG Treasury Income
This offers something up and down the risk and reward spectrum you can determine based on client need.
For investors who are worried about entering the market with new money or staying invested, having a downside buffer aims to make it easier to stay invested for the long run.
Reach out to ZEGA for more information and check out the resources for the ZBIG lineup on our website including the benefits and risks: https://zegainvestments.com/products/zbig