Big Lizard

From the previous context of Jade Lizard,

If we sell straddle instead of strangle along with the OTM call buy, it is called Big Lizard. The term “Big” in “Big Lizard” comes from the fact that selling straddle yields “bigger” credit in premium than strangle.

Here is a table for a quick graphical representation – 

Jade Lizard – Sell Strangle + Buy OTM Call

Big Lizard – Sell Straddle + Buy OTM Call

Post a comment

Leave a Comment

Your email address will not be published. Required fields are marked *