Build a Reverse Jade Lizard Strategy
What is a reverse jade lizard?
BearishLimited ProfitUnlimited Loss
A slightly bearish strategy combining an out-of-the-money short call and out-of-the-money bull put spread. When created properly, this strategy has no downside risk. It is best suited for overbought stocks with high implied volatility.
- Buy a put at strike A
- Sell a put at strike B
- Sell a call at strike C