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OptionsMath

Jade Lizard Calculator

Jade lizard profit equals net credit minus short put obligation minus short call spread loss.

Expiration scenarios

Solution

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Jade Lizard Formula

A jade lizard sells a put and sells a call spread. Upside risk disappears when credit is at least the call spread width.

Worked Examples

Load these examples to compare common jade lizard payoff outcomes.

JADE LIZARD

Check whether credit covers the call wing

The call spread width is compared with the total credit.

  • Enter the manual prices and assumptions.
  • Review the calculated risk, reward, and break-even metrics.
  • Compare the chart with the highlighted scenario.

Result: the calculator updates the scenario metrics and chart from those inputs.

Real fills, fees, and broker margin rules are not modeled.

How It Works

A jade lizard combines a short put with a short call spread to collect credit without naked upside risk when credit covers the call width.

Example Problem

Sell a put and sell a call spread above the stock price.

  1. Add the net credit.
  2. Compare credit with call spread width.
  3. Calculate downside break-even.
  4. Review expiration P/L.

The short put can still create substantial downside risk.

Key Concepts

Credit can offset call-spread risk, but downside risk comes from the short put.

Applications

  • Comparing high-credit neutral trades.
  • Checking no-upside-risk setups.
  • Sizing short-put downside risk.

Common Mistakes

  • Ignoring short put risk.
  • Assuming every jade lizard has no upside risk.
  • Forgetting assignment risk.

Frequently Asked Questions

What does the Jade Lizard Calculator calculate?

It calculates the selected options result from manual inputs, without requiring live stock or option quotes.

Does this calculator need live market data?

No. Enter the prices, premiums, volatility, days, or Greeks yourself. The calculator uses those manual inputs only.

Are commissions, taxes, margin interest, and assignment fees included?

No. The result excludes commissions, fees, taxes, borrow costs, slippage, and broker-specific margin rules.

Why can real trading results differ?

Real option prices can change with implied volatility, liquidity, dividends, early assignment, and execution prices.

Reference: Standard options payoff, probability, and risk-management formulas.

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