Jade Lizard
Sell an OTM Put and simultaneously sell an OTM Bear Call Spread, engineered so that total credit collected exceeds the call spread width (ZERO upside risk!).
Interactive Payoff Curve & Greeks Simulation
Visualize the theoretical profit & loss at expiry vs T+0 immediate day curves. Drag the simulation slider to stress-test your trade.
Option Payoff Curve & Greeks
Net Option Greeks (Sensitivity Profile)
Values per 1 Lot standard unitMulti-Leg Position Structure (3 Legs)
| Action | Instrument / Strike | Type | Expiry | Approx Delta | Est. Premium | Qty Ratio |
|---|---|---|---|---|---|---|
| SELL | 24,000 PE (OTM) | PUT | Monthly Expiry | -0.20 | ₹95 | 1x |
| SELL | 24,800 CE (OTM) | CALL | Monthly Expiry | +0.25 | ₹120 | 1x |
| BUY | 25,000 CE (Hedge Wing) | CALL | Monthly Expiry | +0.12 | ₹50 | 1x |
How the Structure Works
Zero upside risk with positive theta decay (+θ) and short vega.
The Jade Lizard is an ingenious quantitative options structure. You sell a naked OTM Put and an OTM Bear Call Spread. By ensuring the total credit collected (₹165) exceeds the width of the call spread (₹200 - ₹165 = wait, here credit is designed so you cannot lose money to the upside!), you completely eliminate upside risk. If the market explodes to new all-time highs, you still make a guaranteed profit!
Institutional Strike Selection Rules
Phased Execution Blueprint
Follow this structured sequence to eliminate emotional hesitation during order entry, lifecycle management, and final exit.
High IV Skew
Deploy when Put IV is high and call spread can be financed.
Interactive Margin & Position Size Calculator
Calculate exact lot sizing based on the 1-2% risk rule to preserve capital against Black Swan events.
Options Position Size & Max Risk Calculator
Total net liquid equity in your brokerage account
Recommended: 1.0% - 2.0% for disciplined longevity
Wing width max loss or defined mental/system SL
Rigorous Risk Rules & Adjustment Protocols
Non-negotiable parameters for stop-loss triggers, portfolio caps, and firefighting adjustments when market tests your strikes.
- Roll short put down and out.
F&O margin required for short put.
NIFTY Jade Lizard Trade Walkthrough
Nifty traded at 24,500 with high IV.
Sold 24000 PE @ ₹95 / Sold 24800 CE @ ₹120 / Bought 25000 CE @ ₹50 (Net Credit = ₹165 = ₹4,125)
- Made 100% max profit even though market rallied 600 points past the short call!
Common Mistakes to Avoid
Why it happens: Creates upside loss.
Solution: Always verify Total Credit > Call Width.
Institutional Pro Tips
Jade Lizard FAQs
Why is there zero upside risk?
Because the total cash credit collected upfront is larger than the maximum possible loss on the bear call spread.
Alternative & Complementary Strategies
Sell an OTM Call Spread and an OTM Put Spread simultaneously to collect double premium in a range-bound market with strictly defined risk.
Sell an OTM Call and an OTM Put at different strikes to collect premium with wider breakeven buffers than a straddle.
Sell a higher OTM Put and buy a lower protective Put to collect upfront credit with strictly defined maximum risk.