# Jade Lizard

> Is the credit genuinely larger than the width of the call spread?

| Property | Value |
| --- | --- |
| Market phase | Range-bound, no trend, price oscillating between levels, Basing out, or a quiet upward drift |
| Driver | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility, Delta - you get paid because price moves your way |
| Direction | neutral to mildly bullish |
| Max profit | the credit received |
| Max loss | the put strike minus the credit received |
| Risk defined | Yes |
| Legs | -1 Put @Kp; -1 Call @Kc1; +1 Call @Kc2 |
| Approval level | 4 (Uncovered short positions - the highest approval tier and margin requirement) |
| Experience | Advanced |

## Formulas

```text
Break-even: Kp - C
Max profit: C
Max loss: Kp - C
```

## Legs

1. -1 Put @Kp
2. -1 Call @Kc1
3. +1 Call @Kc2

[Read this strategy on the web](https://www.mindtrajour.com/en/academy/strategies/jade-lizard)