The aim of a jade lizard is to collect enough premium to offset the width of the call spread, thereby eliminating upside risk.
For example, a jade lizard in XYZ might be established by selling the $10 put as well as the $14/15 call vertical spread. Because the call vertical spread is $1 wide, this trade would need to collect at least $1 in total premium in order to eliminate that upside risk. This leaves only downside risk, making it a bullish trade.
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