Jade Lizard
Range to moderately bullish, no upside risk by design
A short put plus a short call spread — collected premium engineered to exceed the call spread's width, which removes upside risk entirely if it's built right.
Payoff at expiry
Illustrative · NIFTY @ 25000Max Profit
₹7,875
Max Loss
₹7,125
Breakeven
24795
How it's built
Sell an OTM put, and separately sell a call spread — a short call plus a further OTM long call as its cap. Three legs, and the strike and width selection is the entire point of the trade.
When to deploy it
You're comfortable owning downside risk, as with any short put, but specifically want zero risk if spot rallies instead. As long as total premium collected exceeds the width between the two call strikes, there's no price above which this position loses money — that asymmetry, not the premium itself, is what the strategy is actually selling.
Worked example
Say NIFTY is trading around 25,000 with a few sessions left before expiry. You sell the 24900 put for ₹55, sell the 25100 call for ₹90, and buy the 25200 call for ₹40 — a net credit of ₹7,875 for one lot of 75.
At expiry, the position is worth the most once NIFTY is on the right side of 24795 — up to ₹7,875 per lot. Move against that line instead and the worst case is capped at ₹7,125 per lot, not open-ended.
Mistakes that break this strategy
- Building it with total credit less than the call spread's width, which silently reintroduces upside risk and defeats the entire premise of the trade.
- Treating it as low-risk because "no upside risk" sounds safe — the downside from the naked short put is real and uncapped down to zero.
- Skipping the width-vs-credit check at entry and only noticing the position wasn't actually risk-free above the market on the way there.
More neutral strategies
See it read live, not just diagrammed
Quantum Horizon reads Aegis/Zenith wall migration and RRG rotation live across NIFTY, BANKNIFTY, FINNIFTY and MIDCPNIFTY — sign in and watch it work in Paper mode.