Jade Lizard
A clever "no upside risk" construction. You collect cash and set it up so even a strong rally brings no loss; the only risk is a big drop (like a plain sold put).
How the Jade Lizard works
The key is to collect a credit no smaller than the call-spread width: then you risk nothing to the upside, even on a strong rally. All the risk sits below, in the sold put. It likes high IV.
Placing strikes at GEX levels
Short put at the Put Wall (support), call spread at/beyond the Call Wall (resistance). The ideal regime is positive GEX and high IV. Check the credit ≥ the call-spread width.
The walls are computed live in the GEX Terminal — Position Builder.
When to open, the Greeks and managing the position
Open it on mildly rising markets with inflated put IV — that lets you collect a rich premium on the short put and easily meet the key condition: total credit ≥ the call-spread width, which fully removes upside risk. Max profit = the entire credit (between the short strikes); the sole lower breakeven = short put strike − credit.
Greeks: positive theta, sensitivity to put IV. Management: on a break below the short put strike, defend by rolling the call spread down (extra credit) or the short put out in time.
FAQ
If the credit received is at least the call-spread width, any loss on the calls is offset by the credit.
Downside — like a short put: the loss grows as price falls toward zero.
Build the Jade Lizard on live BTC and ETH quotes in the Position Builder.
Open the Position BuilderRelated strategies
Information is for educational purposes only and does not constitute investment advice. Options trading carries high risk.