Reverse Jade Lizard – Neutral to Slightly Bearish Income Strategy

Reverse Jade Lizard is a neutral to moderately bearish strategy where a Call and a Put are sold, and a lower Put is bought to cap downside risk. When to use: Use this strategy when the market is expected to drift lower but avoid sharp declines. Historic Example: In January 2025,

was expected to trade near 5500 for February 2025 expiry. • Sell 5900 Call @ ₹75 • Sell 5700 Put @ ₹65 • Buy 5500 Put @ ₹40 Net premium received = ₹100 Profit & Risk: Max Profit = ₹100 Max Loss = Unlimited if price rallies sharply above Call strike Key takeaway: Reverse Jade Lizard benefits from time decay with protected downside, but upside risk remains open. 📌 Disclaimer: This content is for information only and not investment advice. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered advisor before making any investment decisions.