{"id":8578,"date":"2022-08-09T20:38:37","date_gmt":"2022-08-09T12:38:37","guid":{"rendered":"https:\/\/slashtraders.com\/?p=8578"},"modified":"2025-09-29T17:42:52","modified_gmt":"2025-09-29T09:42:52","slug":"jade-lizard-options","status":"publish","type":"post","link":"https:\/\/slashtraders.com\/en\/blog\/jade-lizard-options\/","title":{"rendered":"How to Use Jade Lizard to Generate Profits in Any Market"},"content":{"rendered":"<p class=\"wp-block-paragraph translation-block\">When we believe the stock price will rise a little, we can trade a Jade Lizard <a href=\"https:\/\/slashtraders.com\/en\/blog\/what-are-options\/\" target=\"_blank\" rel=\"noreferrer noopener\">options<\/a> strategy to profit from a slightly bullish outlook.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Today, we share what a Jade Lizard is, and how to find the best entry points using the Options Scanner.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<span class=\"RuAUFbaoPKq3wiMHBY8hjSnLg2y17JfZ0rv6W4X\"><iframe title=\"How to Find the Best Jade Lizard Options\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/K56sV2SnRJs?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/span>\n<\/div><\/figure>\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"\u73fe\u5728\u6700\u4f73\u7684strangle\u9078\u64c7\u6b0a\u9032\u5834\u6a5f\u6703\">What Is a Jade Lizard Options Strategy?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A Jade Lizard is a slightly bullish options strategy made up of a short Put and a Bear Call Spread. The trade is most profitable when the stock price rises a little bit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If we believe the AMZN stock price will move up a little in the next few months, we can sell a Jade Lizard to profit from the slight bullish move:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Trade a 0.30 delta <a href=\"https:\/\/slashtraders.com\/en\/blog\/cash-secured-put\/\" target=\"_blank\" rel=\"noreferrer noopener\">short Put<\/a> close to the market price to define the minimum stock price.<\/li>\n\n\n\n<li class=\"translation-block\">Sell a 0.20 delta <a href=\"https:\/\/slashtraders.com\/en\/blog\/bear-call-spread-delta-hedge\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bear Call Credit Spread<\/a> to define the maximum stock price.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/amzn-jade-lizard.png\" alt=\"amzn jade lizard\" class=\"wp-image-8582\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/amzn-jade-lizard.png 1280w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/amzn-jade-lizard-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/amzn-jade-lizard-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/amzn-jade-lizard-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/amzn-jade-lizard-18x10.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The Jade Lizard is most profitable when AMZN stock price rises a little.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The trade will be profitable if AMZN rises a little. But if the stock price falls, the maximum loss is buying 100 worthless stocks from the assigned Put contract.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"\u73fe\u5728\u6700\u4f73\u7684strangle\u9078\u64c7\u6b0a\u9032\u5834\u6a5f\u6703\">Key Points to Trading Jade Lizards<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">A Jade Lizard is made up of 3 option contracts, and it's quite similar to neutral trades like a <a href=\"https:\/\/slashtraders.com\/en\/blog\/best-strangle-options-strategy\/\" target=\"_blank\" rel=\"noreferrer noopener\">Strangle<\/a> (2 contracts) and an <a href=\"https:\/\/slashtraders.com\/en\/blog\/best-iron-condor-options\/\" target=\"_blank\" rel=\"noreferrer noopener\">Iron Condor<\/a> (4 contracts).<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">We want to enter a Jade Lizard when the option's value is high, then exit after theta and vega depreciate the <a href=\"https:\/\/slashtraders.com\/en\/blog\/options-value\/\" target=\"_blank\" rel=\"noreferrer noopener\">option's value<\/a>.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Vega is the changes to options value with respect to changes in IV.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Since we want to sell high and buy low, we need to sell to open at high IV, then <a href=\"https:\/\/slashtraders.com\/en\/blog\/buy-to-open-vs-buy-to-close\/\" target=\"_blank\" rel=\"noreferrer noopener\">buy to close<\/a> when vega causes the option's value to decay at low IV.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Theta is the changes to options value with respect to changes in time.<\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/04\/theta-decay.png\" alt=\"theta decay\" class=\"wp-image-7604\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/04\/theta-decay.png 1280w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/04\/theta-decay-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/04\/theta-decay-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/04\/theta-decay-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/04\/theta-decay-18x10.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Selling options with more than 30 days to expiration have a predictable time value decay.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">From our experience, selling options with more than 30 days to expiration have a predictable <a href=\"https:\/\/slashtraders.com\/en\/blog\/option-greeks\/\" target=\"_blank\" rel=\"noreferrer noopener\">time value decay<\/a>. So we can be patient and earn a profit as time passes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Jade Lizard has no upside risk even when the stock price goes up a lot. This requires the premium received to be greater than the width of the Call Credit Spread. This way the trade doesn't lose even when the stock price rises beyond the Call Spread.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/amzn-jade-lizard-upside-risk.png\" alt=\"amzn jade lizard upside risk\" class=\"wp-image-8585\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/amzn-jade-lizard-upside-risk.png 1280w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/amzn-jade-lizard-upside-risk-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/amzn-jade-lizard-upside-risk-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/amzn-jade-lizard-upside-risk-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/amzn-jade-lizard-upside-risk-18x10.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The Jade Lizard has no upside risk.<\/figcaption><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Gamma is the changes to delta with respect to changes in stock price. It is also the acceleration to options prices with respect to changes in stock price.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Gamma grows when the options are close to expiration, leading to big fluctuations in options value. So whether our Jade Lizard is profitable or not, we prefer to close the trade or <a href=\"https:\/\/slashtraders.com\/en\/blog\/roll-options\/\" target=\"_blank\" rel=\"noreferrer noopener\">roll it to the next month<\/a> before 14 days to expiration, to reduce gamma risks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">We also use <a href=\"https:\/\/slashtraders.com\/en\/blog\/fundamental-analysis-vs-technical-analysis\/\" target=\"_blank\" rel=\"noreferrer noopener\">fundamental analysis<\/a> to choose Jade Lizard stocks with Fair Values greater than the market prices, to give us more confidence in a bullish outlook.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><a href=\"https:\/\/slashtraders.com\/en\/pricing\/?utm_source=blog&amp;utm_medium=banner\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"971\" height=\"120\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/03\/slashtraders-trial-banner.png\" alt=\"slashtraders trial banner\" class=\"wp-image-7387\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/03\/slashtraders-trial-banner.png 971w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/03\/slashtraders-trial-banner-300x37.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/03\/slashtraders-trial-banner-768x95.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/03\/slashtraders-trial-banner-18x2.png 18w\" sizes=\"(max-width: 971px) 100vw, 971px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Best Options Scanner Settings for Jade Lizards<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\"><a href=\"https:\/\/slashtraders.com\/en\/tools\/options-scanner\/\" target=\"_blank\" rel=\"noreferrer noopener\">Options Scanner<\/a> is designed to find high probability and high return short neutral options in seconds. Here are some tips for using the filter function to find the best Jade Lizard entry points:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>We want to choose opportunities with greater than 30 DTE to get the safest theta decay and less gamma.<\/li>\n\n\n\n<li class=\"translation-block\">We can filter <a href=\"https:\/\/slashtraders.com\/en\/blog\/iv-rank-vs-iv-percentile\/\" target=\"_blank\" rel=\"noreferrer noopener\">IV Perc<\/a> &gt;67% to find opportunities that have a high chance of contracting IV and vega in our favour.<\/li>\n\n\n\n<li>We should also avoid underlying that have an upcoming Earnings Date in 30 days to reduce the chance of large fluctuations.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"254\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/options-scanner-jade-lizard-settings.png\" alt=\"options scanner jade lizard settings\" class=\"wp-image-8588\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/options-scanner-jade-lizard-settings.png 1280w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/options-scanner-jade-lizard-settings-300x75.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/options-scanner-jade-lizard-settings-1024x254.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/options-scanner-jade-lizard-settings-768x191.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/options-scanner-jade-lizard-settings-18x4.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The filter feature helps us find the best Jade Lizard entry points.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Finally, since Jade Lizards have similar properties to Strangles, we sort the Strangles ROC by descending order to get ideas for high-return Jade Lizard trades.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Best Jade Lizard Opportunities Right Now<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The filtered list shows that ROKU's $133.70 Fair Value is higher than the current market price. It also has a 97% IV Percentile that has a high chance of reducing IV in the future.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"446\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/options-scanner-best-jade-lizards-1024x446.png\" alt=\"options scanner best jade lizards\" class=\"wp-image-8591\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/options-scanner-best-jade-lizards-1024x446.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/options-scanner-best-jade-lizards-300x131.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/options-scanner-best-jade-lizards-768x335.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/options-scanner-best-jade-lizards-18x8.png 18w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/options-scanner-best-jade-lizards.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">ROKU is the best Jade Lizard opportunity right now.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">So ROKU fits the bullish and <a href=\"https:\/\/slashtraders.com\/en\/blog\/market-volatility-hv-iv\/\" target=\"_blank\" rel=\"noreferrer noopener\">high IV<\/a> criteria that make it a good choice for Jade Lizard options:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sell a Put at 0.40 delta.<\/li>\n\n\n\n<li>Sell a $130 Call Spread near the Fair Value.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/roku-jade-lizard.png\" alt=\"roku jade lizard\" class=\"wp-image-8593\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/roku-jade-lizard.png 1280w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/roku-jade-lizard-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/roku-jade-lizard-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/roku-jade-lizard-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/08\/roku-jade-lizard-18x10.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The maximum return on capital is 37% when ROKU rises a little.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This Jade Lizard uses $1,670 in buying power, and receives $620 in premium that is larger than the width of the Call Spread. This way the Jade Lizard will not lose money even if the stock price explodes in value.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If ROKU's stock price remains between $75 and $130 before expiration, the trade has a maximum return of 37%.<\/p>\n\n\n\n<p class=\"has-ast-global-color-4-background-color has-background wp-block-paragraph\"><a href=\"https:\/\/slashtraders.com\/en\/blog\/slashtraders-vs-sp500\/\" target=\"_blank\" rel=\"noreferrer noopener\">SlashTraders vs S&amp;P 500: 450% Outperformance, Verified Trades and How to Copy Every Alert<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>We can trade a Jade Lizard options strategy to profit from a slightly bullish outlook. We share what a Jade Lizard is, and how to find the best entry points.<\/p>","protected":false},"author":1,"featured_media":8579,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"plain-container","ast-site-content-layout":"normal-width-container","site-content-style":"unboxed","site-sidebar-style":"unboxed","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","_wp_rev_ctl_limit":"5"},"categories":[3],"tags":[44,56,12,64,14,55,11],"class_list":["post-8578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-amzn","tag-cn","tag-en","tag-es","tag-options","tag-roku","tag-tw"],"_links":{"self":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/8578","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/comments?post=8578"}],"version-history":[{"count":5,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/8578\/revisions"}],"predecessor-version":[{"id":13940,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/8578\/revisions\/13940"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/media\/8579"}],"wp:attachment":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/media?parent=8578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/categories?post=8578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/tags?post=8578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}