Strategies
Jade Lizard
Neutral to mildly bullish premium strategy built from a short put and a bear call spread.
Description
What the strategy consists of
The classic Jade Lizard consists of one short put and one bear call spread in the same expiration.
That keeps upside controlled while the real risk begins below the short put.
The setup often becomes more attractive in higher IV because the credit can be richer.
P/L Diagram
Schematic at expiration
Summary
What matters most
- Direction Neutral to mildly bullish.
- Structure Short put plus bear call spread.
- Strength Rich premium with controlled upside.
- Drawback Real downside below the short put.