Jade Lizard Calculator

By Dennis Bosmans · Updated June 2026 · 2 min read · Risk disclaimer

A jade lizard sells a put and a call spread at the same time. Structured so the total credit is at least the width of the call spread, it carries no risk if the stock rises — only downside risk, like a short put.

Open the Jade Lizard calculator →

Key characteristics

Three legs: short out-of-the-money put + short call + long further-out call (the call spread).
No upside risk when the credit received is greater than or equal to the call-spread width.
Profits in a wide range: anywhere above the put strike at expiration keeps most of the premium.
Downside risk is the same as a cash-secured put — you may be assigned the stock.

When to use a jade lizard

Use a jade lizard when you are neutral to mildly bullish and want to collect premium without the upside risk of a naked strangle. It is a favourite of premium sellers on stocks they would not mind owning lower.

It works best when implied volatility is elevated (richer premiums) and you have no strong view that the stock will fall sharply.

How the payoff works

Maximum profit is the net credit, earned if the stock finishes between the put strike and the short call at expiration. Above the long call, the call spread is fully offset, so the credit still cushions you — no loss on the upside.

The risk is below the put strike: like a short put, your loss grows as the stock falls, down to (put strike − credit) × 100 at a zero stock price.

Worked example. Stock at $100. Sell the $95 put for $1.50, sell the $105 call for $1.00 and buy the $108 call for $0.40 — a net credit of $2.10 ($210). The call spread is $3 wide, so there is a little upside risk here; widen the credit or narrow the spread to remove it. Below $95 you are exposed like a short put; the breakeven is about $92.90.

Calculate it live

Use the free OptionProfit Jade Lizard calculator to load a live option chain, build the trade, and instantly see the payoff chart, breakevens, probability of profit, Greeks and a Monte Carlo simulation of outcomes.

Key takeaways

Jade lizard = short put + short call spread, collected for a credit.
No upside risk when the credit ≥ the call-spread width.
Downside risk mirrors a cash-secured put.
Best in high implied volatility on names you would own lower.

Frequently asked questions

Why does a jade lizard have no upside risk?

Because the call spread can only lose its width, and the total premium collected is set to be at least that width — so even an unlimited rally leaves you at worst breakeven on the call side.

What is the risk of a jade lizard?

The downside: below the short put strike you lose like a short put, and may be assigned 100 shares at the strike. Size it like a cash-secured put.

When does a jade lizard reach max profit?

When the stock finishes between the short put and short call strikes at expiration, so all three options expire worthless and you keep the full credit.

Educational use only. Quotes are delayed ~15 minutes and nothing here is financial advice. Options trading involves substantial risk of loss. Privacy Policy · Terms & Conditions.