Jade Lizard vs Iron Condor

A Jade Lizard leaves its short put unprotected and pairs it with a Bear Call Spread. An Iron Condor adds a long put beneath the short put. Removing that protection raises the credit, but can increase the loss in a severe decline substantially.

What Are You Choosing Between?

The decision is whether to retain a firm downside limit, not just which position collects more premium. Compare losses far below the put strike and the cash needed if shares are assigned. A larger account does not change the payoff of the missing Protective Put.

The Main Differences

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Results for the example positions below, before costs
Compare	Jade Lizard	Iron Condor
Construction	An unprotected short put plus a narrow Bear Call Spread.	Add a protective $90 put to the otherwise matching Jade Lizard.
Example entry	$390 net credit	$140 net credit
Maximum profit	$390	$140
Maximum loss	$9,110	$360
Breakeven price	$91.10	$93.60; $106.40

A Practical Example

Both sell the $95 put and the $105/$107.50 call spread. The Jade Lizard collects $390, more than the $250 call width. The Condor pays $250 for a $90 Protective Put, reducing its credit to $140. The Jade Lizard keeps a small profit on a large rise, but can lose $9,110 at a zero stock price.

XYZ is at $100 when the option trades are entered. Premiums below are per share; each option contract covers 100 shares. Each column shows one complete position, not an equal-capital allocation. Prices are hypothetical and exclude commissions, taxes, dividends, financing costs and early-assignment cashflows.

Exact quantities, strikes, premiums and days to expiration
Position	Example legs
Jade Lizard	Sell 1 $95 put, 30 days, at $3 Sell 1 $105 call, 30 days, at $3 Buy 1 $107.50 call, 30 days, at $2.10
Iron Condor	Buy 1 $90 put, 30 days, at $2.50 Sell 1 $95 put, 30 days, at $3 Sell 1 $105 call, 30 days, at $3 Buy 1 $107.50 call, 30 days, at $2.10

Comparing the Expiration Payoffs

Jade Lizard vs Iron Condor — expiration payoff comparison — Profit or loss at the common 30-day expiration, including the stated entry amounts. Lines overlap when the example payoffs match. The displayed price window does not cap an unlimited loss or gain.

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Expiration profit / loss in dollars
XYZ price	Jade Lizard	Iron Condor
$80	−$1,110	−$360
$95	$390	$140
$100	$390	$140
$105	$390	$140
$120	$140	−$110

What to Watch For

The Condor’s lower credit also changes its upside result: the $250 call width exceeds its $140 credit. Paying for downside protection is not an isolated change to one tail because it reduces the profit of the whole position. Include both effects.

Before expiration, time value and implied volatility can change a position’s market value. Short options also create exercise and assignment obligations. Review the full strategy guides for position management and settlement details.

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