Reverse jade lizard
BearishLimited profitUnlimited loss
Short call + short put spread: mirror lizard with no downside risk if sized right.
Payoff at expiry — live BTC example
Net credit
$174.27
Max profit
$174.27
Max loss
Unlimited
Breakevens
74,026 / 76,774
Example legs (0.3 DTE front)
- Sell 76,600 call
- Sell 74,200 put
- Buy 73,600 put
Entry greeks (per 1 BTC notional): Δ -0.100 · Γ -0.2184 per 1% · vega $-6.98/pt · theta $847.38/day
How it works
Short OTM call plus a short put spread with credit exceeding the put-spread width: downside risk eliminated, naked call remains.
When to use it
Neutral-bearish income; rarer because the naked side is the unlimited one.
Risks & management
The remaining risk is the unlimited short call — size accordingly.
Related structures
Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.