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
$54.49
Max profit
$54.49
Max loss
Unlimited
Breakevens
64,746 / 67,054
Example legs (0.7 DTE front)
- Sell 67,000 call
- Sell 64,800 put
- Buy 64,200 put
Entry greeks (per 1 BTC notional): Δ -0.031 · Γ -0.2078 per 1% · vega $-7.17/pt · theta $136.94/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.