Jade Lizard
No Upside Risk — Pure Premium Collection
The "secret" income trade used by pros: sell a put + sell an OTM call spread → Collect fat premium with zero risk of being called away.
Jade Lizard = Put + Call Credit Spread (No Naked Call!)
Sell Naked Put
(or cash-secured)
+$1,800–$3,000
Typical monthly credit
Sell OTM Call Spread
Eliminates upside risk
Live Example: NVDA Jade Lizard (30 DTE)
NVDA = $915 | Slightly Bullish / Neutral
Sell Put
$880 put
+$38.00 credit
Sell Call
$980 call
+$18.50 credit
Buy Call (Hedge)
$1,000 call
−$12.80 debit
+$4,370 Net Credit
No upside risk above $1,000
You keep full credit if NVDA ≤ $1,000 at expiration
+$4,370 Profit
All options expire → keep 100 % credit
Jade Lizard Math: Breakeven, P/L, Risk
Downside Breakeven
$836.30
Put strike − total credit
Max Profit
+$4,370
Full credit if ≤ $1,000
Max Loss (Upside)
$0
Call spread caps it
Jade Lizard Golden Rules
Call spread must fully cover put premium (or very close)
Sell 7–45 DTE (weekly or monthly)
Put strike slightly OTM or ATM
Call spread 5–15 % OTM
Only on stocks you're neutral to bullish on
Best when IV is elevated
Roll put if tested, let call spread expire
Jade Lizard Adjustment Playbook
1. Roll the Put Down & Out
Most common fix — collect even more credit
- • Put gets tested? Buy it back
- • Re-sell further down + out in time
- • Usually collect net credit
- • Lowers breakeven even more
2. Invert to ZEBRA
Zero Extrinsic Back Risk Adjustment
- • Close the put for a loss
- • Sell a new call spread higher up
- • Now you're bullish instead of neutral
3. Let Call Spread Expire
You're never at risk above your long call
- • Stock moons? Your long call protects you
- • Max loss = spread width − credit
- • Often = $0 or small profit still
Quick Quiz – Jade Lizard
1. What makes a Jade Lizard have no upside risk?
2. You sell a $100 put for $5 credit and a $120/$130 call spread for $3 net credit. Your downside breakeven is:
3. True or False: The Jade Lizard is best used when you're extremely bearish.
4. What's the main adjustment when the put gets tested?
5. Why is the call spread credit critical?
View Correct Answers
- Question 1: Buying a further OTM call to cap the short call
- Question 2: $92
- Question 3: False — best for neutral to bullish outlook
- Question 4: Roll the put down and out for more credit
- Question 5: It must cover the put premium to eliminate upside risk
Jade Lizard FAQ
Apply This on Treeova
The Jade Lizard eliminates upside risk while collecting premium. Here's how to implement it on Treeova.
Find a Candidate
Look for neutral-to-bullish stocks with elevated IV where you can collect enough credit to exceed the call spread width.
Verify the Structure
Ensure the total credit received (put + call spread) exceeds the width of the call spread — this eliminates upside risk.
Set Up Monitoring
Use the prompt-based strategy builder to monitor the position and manage downside risk.
💡 Example Prompt
"Create a Jade Lizard on AMZN. Sell a 0.20 delta put and a call spread where the total credit exceeds the spread width. Target 30-45 DTE when IV rank is above 40. Alert me at 50% profit or if the short put delta exceeds 0.35."