Trade Idea - Long Call ZEBRA on RF

Disclaimer: The trades discussed in this blog reflect the author's personal strategies and decisions. These are not financial advice and should not be considered recommendations to buy, sell, or hold any financial instruments. The author is not a licensed financial advisor. Options trading carries significant risk, and readers should perform their own research or consult a qualified financial advisor before making any investment decisions. Past performance does not guarantee future results.

Today I entered a bullish position on Regions Financial (RF) using a long call ZEBRA. This strategy offers synthetic long exposure with capped risk and reduced capital outlay, perfect when I see upside potential in a stock but want to avoid the full cost or risk of owning shares outright.

With RF trading around $26.72, this setup gives me high delta exposure beyond the lower strike, mimicking a long stock position, while defining risk to the premium paid. The recent upward revisions to earnings estimates, strong capital deployment, and improving net interest income environment all support a bullish outlook.

The Trade

All options are in the October 17, 2025 expiration:

• Buy 2× 26.0 Calls
• Sell 1× 27.0 Call

This setup costs approximately $2.20 per share, or $220 total per spread. The P&L profile closely tracks the stock's move above the $26 strike, with nearly dollar-for-dollar participation beyond breakeven.

Here's the P&L snapshot:

And to give a better idea, here is the historical price chart of the stock:

Why RF?

I'll make it short: Regions Financial (RF) has solid fundamentals and strategic positioning. The company is benefiting from steady net interest income growth amid high rates, a healthy loan pipeline in key U.S. markets, and smart acquisitions that diversify its revenue streams. With a strong balance sheet, robust liquidity, and active shareholder returns through dividends and buybacks, RF is financially sound. Additionally, ongoing investments in digital platforms and system upgrades are expected to drive long-term growth and efficiency.

Trade Breakdown

• Max Risk: $235
• Breakeven: $27.35 at expiration
• Upside Potential: Unlimited beyond the breakeven, participation is nearly 1:1 with RF’s share price above $27
• Downside Risk: Capped at initial debit

This trade is part of my ongoing trade log and will be monitored for developments. As always, I remain flexible and may adjust or exit the position depending on price action and volatility in the weeks ahead.