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Jade Lizard Calculator

Model your jade lizard before you place it. Enter your strikes and premiums to instantly see max profit, max loss, breakeven, and a full P&L diagram for your jade lizard position.

Short Put + Short Call Spread Net Credit Strategy No Upside Risk (When Structured Correctly) Interactive P&L Diagram

Underlying Asset

$
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Strategy Template (optional — pre-fills legs below)

Option Legs

Legs with different expirations are supported (calendar spreads). Implied Vol % is used by the Black-Scholes engine for theoretical pricing.

Getting Started

How to Use This Calculator

Enter your three option legs and the calculator handles the rest. Results update instantly as you type.

1

Enter the short put

Enter the strike price and premium received for the out-of-the-money put you are selling. This leg defines your downside risk and contributes credit to the overall position.

2

Enter the short call

Enter the strike price and premium received for the out-of-the-money call you are selling. This short call pairs with the long call to create the call spread portion of the jade lizard.

3

Enter the long call

Enter the strike price and premium paid for the further out-of-the-money call you are buying. This long call caps your upside risk, converting the naked short call into a defined-risk spread.

4

Review your results

The calculator shows your net credit, max profit, downside breakeven, and whether your position has zero upside risk, along with a full P&L diagram at expiration.

Strategy Breakdown

Understanding the Jade Lizard

Key numbers every jade lizard trader needs to know before entering the position.

Max Profit
Total Net Credit Received
Maximum profit equals the total credit collected from all three legs. This occurs when the stock closes between the short put strike and the short call strike at expiration, causing all options to expire worthless.
Downside Max Loss
Short Put Strike × 100 − Net Credit
On the downside, the risk is the same as a naked short put. If the stock drops to zero, the max loss is the short put strike multiplied by 100, minus the net credit. In practice, the loss increases dollar for dollar below the breakeven point.
Upside Risk
Zero (When Credit ≥ Call Spread Width)
When the total credit received is greater than or equal to the width of the short call spread, there is no upside risk at all. This is the defining feature of a properly structured jade lizard and what sets it apart from a short strangle.

A jade lizard combines a short out-of-the-money put with a short call spread (sell a call, buy a higher-strike call). All three legs are sold for a net credit. The structure is essentially a short strangle where the naked call has been converted into a defined-risk call spread by purchasing a protective long call at a higher strike.

The key to a jade lizard is collecting enough total credit to cover the width of the call spread. When the combined credit from the short put and short call exceeds the cost of the long call plus the call spread width, the position has zero risk to the upside. If the stock rallies through both call strikes, the loss on the call spread is fully offset by the credit received. This means the only risk is on the downside, below the short put strike minus the credit.

Jade lizards work best in elevated implied volatility environments where the premiums are rich enough to achieve this no-upside-risk structure. They are popular among premium sellers who have a neutral to moderately bullish outlook and want to collect credit while keeping the upside completely safe. The trade-off is that the downside risk is substantial, similar to owning 100 shares of stock below the put breakeven.

Worked Example

Jade Lizard Example Trade

XYZ is at $100. Sell 1 $95 put for $1.50, sell 1 $105 call for $2.00, buy 1 $110 call for $0.80. Net credit: $2.70. Call spread width: $5.00.

Position Summary (Jade Lizard)
Stock Price$100.00
Short Put (sell 1)$95 strike — received $1.50 (+$150)
Short Call (sell 1)$105 strike — received $2.00 (+$200)
Long Call (buy 1)$110 strike — paid $0.80 (−$80)
Net Credit+$2.70 / share (+$270)
Call Spread Width$5.00 ($110 − $105)
Upside Risk CheckCredit $2.70 < Spread $5.00 — upside loss possible ($230 max)
Max Profit+$270 (stock between $95 and $105 at expiry)
Downside Breakeven$92.30 ($95 − $2.70 credit)
Upside Max Loss−$230 ($5.00 spread − $2.70 credit = $2.30 × 100)
Downside Max LossSubstantial (stock to $0: −$9,230)
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FAQ

Jade Lizard — Common Questions

A jade lizard is an options strategy that combines a short out-of-the-money put with a short call spread (selling a call and buying a higher-strike call). All three legs are entered for a net credit. When the total credit collected is greater than or equal to the width of the call spread, the position has zero upside risk. The only risk is on the downside, similar to a naked short put, if the stock drops below the short put strike minus the total credit received.
The maximum profit on a jade lizard equals the total net credit received from all three legs. You keep the full credit when the stock closes between the short put strike and the short call strike at expiration, because all three options expire worthless. For example, if you collect $1.50 from the short put, $2.00 from the short call, and pay $0.80 for the long call, the max profit is ($1.50 + $2.00 − $0.80) × 100 = $270.
On the downside, the max loss is theoretically the short put strike multiplied by 100 minus the net credit (if the stock goes to zero). In practice, losses increase dollar for dollar below the downside breakeven, similar to owning stock. On the upside, if the total credit exceeds the call spread width, there is no risk at all. If the credit is less than the spread width, the upside max loss equals (call spread width − net credit) × 100.
The downside breakeven equals the short put strike minus the total net credit received. For example, if the short put is at $95 and you collected a total credit of $2.70, the breakeven is $95 − $2.70 = $92.30. On the upside, if the total credit exceeds the call spread width, there is no upside breakeven because there is no upside loss. If it does not, the upside breakeven is the short call strike plus the net credit per share.
A jade lizard works best in elevated implied volatility environments with a neutral to moderately bullish outlook. The strategy is ideal when you want to sell premium and collect a credit while eliminating upside risk entirely. It is a popular alternative to a short strangle for traders who are comfortable with naked put risk on the downside but want the peace of mind of a capped upside. High IV makes it easier to collect enough premium to exceed the call spread width and achieve the zero-upside-risk structure.