← Back to Playbook

Jade Lizard

income Uncapped risk

Short premium with no upside risk.

When to use it

Mildly bullish with high IV. A short put plus a short call spread sized so total credit ≥ the call-spread width — eliminating all upside risk.

Max profit

Total credit collected.

Max loss

Downside only (like a CSP below the put).

Payoff at expiry
illustrative shape — not to scale
profit zone loss zone X axis = stock price at expiry →
How it's built

Strikes shown low→high. Sell = collect premium · Buy = pay premium for protection or upside.

Hermes-evaluated setups

High-conviction per-ticker applications — setups with a confidence-adjusted win rate ≥ 80% over ≥20 backtested trades (95% lower bound — honest for the sample size, never a raw 100%). Avg P/L is the mean profit/loss per one-contract position.

Ticker Win Rate Avg P/L Sharpe Trades DTE
CLS 81% +$467.00 2.3 41 9
ETN 84% +$459.00 6.9 31 21
UNH 81% +$342.00 1.7 41 21
BRK-B 82% +$288.00 1.8 36 23
CI 83% +$283.00 1.5 40 21
LIN 80% +$238.00 1.3 33 21
QCOM 83% +$181.00 1.5 38 26

Backtested results are not a guarantee of future performance.