Jade Lizard
Short put plus short call spread, no upside risk
What is Jade Lizard?
Jade Lizard A three-leg options strategy combining a short OTM put with a short call spread (sell OTM call, buy further OTM call). Constructed so the total credit received exceeds the width of the call spread, eliminating upside risk. Risk exists only to the downside. Benefits from time decay and volatility contraction.
Complete Definition
A three-leg options strategy combining a short OTM put with a short call spread (sell OTM call, buy further OTM call). Constructed so the total credit received exceeds the width of the call spread, eliminating upside risk. Risk exists only to the downside. Benefits from time decay and volatility contraction.
Example
Sell $140 put for $3.00, sell $160/$165 call spread for $2.50. Total credit: $5.50. Call spread width is $5, so no upside risk.
Related Terms
Want to Learn More?
Explore our educational resources and analytics tools to deepen your understanding.