STRATEGY EXPLAINER · 2:43

Twisted Sister Strategy Explainer Video

A Twisted Sister sells an out-of-the-money call and a Bull Put Spread on the same underlying, using one expiration. It is also known as a Reverse Jade Lizard. The position collects a net credit and earns its largest profit between the two short strikes. Its short call remains uncovered, so a large rise can produce unlimited losses.

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