'Jade Lizard' Trade Idea for January 2025 Expiration

16. Okt.

JD Jade Lizard

Call credit spread:
Buy JD $46 Call 1/17/2025
Sell JD $45 Call 1/17/2025

-[SHARE PRICE: $40]-

Short Put:
Sell JD $35 Put 1/17/2025

Limit price: $2.45 (credit to open)

Jade Lizard = Credit from short put (below the price) exceeds the max loss of call credit spread (above the price).

Expiration scenarios:

(1) Share price above $46 @ expy, then profit of $145, (no risk to upside with a 'jade lizard' trade).

(2) Share price between $35-$45 @ expy, then profit of $245.

(4) Share price below $35 @ expy, then assigned to buy 100 shares at an avg cost of $32.55, (likely support, you should be so lucky).