Jade Lizard
Bullish/Neutral StrategyUse Zuviz's free options visualizer to build this strategy instantly. Combine a short put with a short call spread (strangle + long call wing). Profits if stock stays flat or rises moderately. NO upside risk when structured correctly!
⚡ Key Takeaways
- Market Outlook: Neutral to slightly bullish
- Max Profit: Net credit received
- Max Loss: Unlimited on upside, but credit > downside risk
- Breakeven: Put strike - total credit, no upside breakeven
- Best for: High credit generation with no downside risk
- Greeks Impact: Positive Theta, negative Vega, slight positive Delta
💡 Visualize this strategy in 10 seconds: Open Zuviz →
📊 Payoff Diagram
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🏗️ Strategy Structure
A Jade Lizard combines a short put with a call credit spread (short strangle + long call wing).
| Leg | Action | Type | Strike | Premium |
|---|---|---|---|---|
| 1 | Sell | Put | $95 (OTM) | $1.50 |
| 2 | Sell | Call | $105 (OTM) | $1.50 |
| 3 | Buy | Call | $110 (Higher) | $0.50 |
Total Credit: $1.50 + $1.50 - $0.50 = $2.50/share ($250/contract)
🧮 Key Calculations
🎯 When to Use This Strategy
- Bullish/neutral: Expect stock to stay flat or rise
- High IV: More premium to collect
- Want asymmetric risk: No upside risk, only downside
- Willing to own stock: If put assigned, you own at lower price
📈 Greeks Impact
Delta (Δ)
Near Zero - You want the stock to stay still.
Theta (Θ)
Positive - Time decay is your best friend here.
Vega (ν)
Negative - You want volatility to decrease (IV Crush).
⚖️ Pros & Cons
Pros
- No upside risk (if collected credit > width of call spread)
- High premium
- Neutral/Bullish bias
Cons
- Substantial downside risk
- Margin intensive
- Complexity
📝 Real-World Example
Stock: XYZ at $100. Trade: Sell $90 Put, Sell $110 Call, Buy $115 Call.
Total Credit: $5.00+ (Aim for > $5 width of spread).