In a lively Tuesday session from the CBOE floor, Liz Dierking and Jenny Andrews analyzed market reactions following CPI data. The S&P 500 (SPX) climbed 46 points while VIX dropped below 15, reflecting decreased market volatility despite August typically being an active trading month.

The hosts demonstrated several capital-efficient options strategies to free up buying power in their account. They transformed a DocuSign (DOCU) naked put into a synthetic covered call using a zero extrinsic back ratio (ZEBRA) strategy, cutting required capital by nearly half while maintaining similar profit potential.

Similar adjustments were made to positions in HIMS and Intel (INTC), replacing deep in-the-money puts with alternative structures. For Archer Aviation (ACHR), they demonstrated how a combo strategy (buying a call and selling a put) creates a stock-equivalent position with significantly less capital than outright stock ownership.

The segment highlighted how understanding synthetic relationships between options positions can dramatically improve capital efficiency while maintaining similar risk profiles.