Jade Lizard option strategy
Jade Lizard combines a short OTM Put with a short OTM Call spread. It is a neutral to mildly bullish income strategy, and when the total credit is at least the width of the call spread it carries no risk on the upside.
Payoff at expiry
Nifty, lot size 65 · Nifty future 25,151 · 17 Nov 2026Legs
| Action | Option | Strike | Lots | Qty | Premium |
|---|---|---|---|---|---|
| SELL | OTM Put | 25,100 | 1 | 65 | ₹88.99 |
| SELL | OTM Call | 25,200 | 1 | 65 | ₹89.99 |
| BUY | OTM Call | 25,250 | 1 | 65 | ₹70.25 |
How it works
- Sell 1 OTM put at the 25,100 strike for ₹88.99, collecting the premium.
- Sell 1 OTM call at the 25,200 strike for ₹89.99, collecting the premium.
- Buy 1 OTM call at the 25,250 strike for ₹70.25, paying the premium.
- You receive a net ₹7,067 upfront for the position. This is the most you can make.
Below 24,991 you lose, and the loss grows as Nifty falls.
Above 24,991 you profit, up to ₹7,067.
Set-up: Sell 1 lot OTM Put, Sell 1 lot OTM Call and Buy 1 lot further OTM Call with same expiration date.
What happens if Nifty moves
Profit or loss at expiry| Nifty at expiry | Move | Profit / loss |
|---|---|---|
| 23,650 | −6% | −₹87,183 |
| 24,400 | −3% | −₹38,433 |
| 24,900 | −1% | −₹5,933 |
| 25,150 | Unchanged | +₹7,067 |
| 25,400 | +1% | +₹3,817 |
| 25,900 | +3% | +₹3,817 |
| 26,650 | +6% | +₹3,817 |
How the Greeks affect it
When to use
When you expect the underlying to stay range bound or drift higher and implied volatility is high.
- Collects premium from both sides.
- Upside risk is capped and can be removed entirely.
- Benefits from time decay and falling volatility.
Things to watch
- Downside risk below the put strike is uncapped.
- Requires margin.
- A sharp fall leads to heavy losses.
Jade Lizard: backtested on NSE data
Real backtests of this structure on NSE data, each with its exact rules, a year of results before and after costs, and where it made and lost money.
- Jade lizard5 trades
- Intraday jade lizard735 trades
Jade Lizard: questions
What is a Jade Lizard strategy?
Jade Lizard combines a short OTM Put with a short OTM Call spread. It is a neutral to mildly bullish income strategy, and when the total credit is at least the width of the call spread it carries no risk on the upside.
When should you use a Jade Lizard?
When you expect the underlying to stay range bound or drift higher and implied volatility is high.
How do you set up a Jade Lizard?
Sell 1 lot OTM Put, Sell 1 lot OTM Call and Buy 1 lot further OTM Call with same expiration date.
What is the maximum profit of a Jade Lizard?
Limited to the net credit received, if the underlying stays between the put and the short call strike at expiry.
What is the maximum loss of a Jade Lizard?
Substantial below the put strike, as the short put loses with every fall. On the upside the loss is capped at the call spread width less the credit, and is nil if the credit exceeds the width.
What is the breakeven of a Jade Lizard?
With Nifty at 25,151, the example on this page breaks even at 24,991 at expiry.