Sell put spread + sell naked call. Mirror lizard: no downside risk if credit > put-spread width.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Sell an out-of-the-money put spread AND a naked out-of-the-money call. When the credit exceeds the put-spread width, there is NO downside risk — the mirror image of the jade lizard.
Rich volatility with a neutral-to-bearish lean, on names you are confident will not melt up.
UNLIMITED above the short call — the naked leg points at the direction stocks gap most violently. Treat the "no downside risk" comfort accordingly.
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Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.