The classic Jade Lizard is already a powerful strategy because it creates income with zero upside risk. But many professional traders use a Jade Lizard Variation to make the structure even safer and easier to manage.
If you're a high-income Singapore investor looking for controlled, consistent returns using options trading, this variation gives you:
✔ A bigger safety zone ✔ A more forgiving downside ✔ Strong income potential ✔ A clean, defined-risk structure
Let’s break it down in the simplest way possible.
What Is a Jade Lizard Variation?
A standard Jade Lizard is:
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Sell a Put
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Sell a Call Spread
The variation simply widens the put side, meaning you choose a put that is further out-of-the-money.
This instantly makes the trade:
✔ Lower risk ✔ Easier to manage ✔ More stable ✔ Less likely to challenge your downside
You still collect premium — but with a better probability of success.
How the Jade Lizard Variation Works
You choose:
1️⃣ A further out-of-the-money put → safer downside buffer
2️⃣ A slightly tighter call spread → removes upside risk
3️⃣ A credit that is still meaningful → your income cycle continues
This setup allows you to earn money even when the stock does absolutely nothing — which is one of the goals of high-income options trading.
Real ~$1,000 Example (SPY)
SPY trading at $500.
You might structure the variation like this:
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Sell the 475 Put (far OTM)
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Sell the 510/515 Call Spread
Because the put is far away from the current price, the trade is:
✔ Safer ✔ More stable ✔ Less likely to require adjustments
You collect around $3–$4 credit, depending on volatility. Size it to reach ~$1,000 per trade.
When This Strategy Works Best
A Jade Lizard Variation is perfect when:
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Markets are choppy but not trending
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You want low stress income
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You prefer fewer adjustments
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Volatility is high enough for good premium
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You want “zero upside risk” with safer downside
This is why it’s a favourite among disciplined high-income traders.
When It Struggles
Like most income trades, this strategy struggles when:
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The stock experiences a sudden crash
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Volatility collapses right after entry
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You choose strikes too aggressively
But because the put is further away, the variation is safer than the classic lizard.
Why High-Income Singapore Investors Use This Strategy
✔ Lower downside risk than traditional Jade Lizards ✔ Still eliminate upside loss ✔ Works well with ~$1,000 capital ✔ Great for sideways markets ✔ High probability of success ✔ One of the safest income strategies inside the Best Options Trading Course in Singapore for Millionaires
This is a strategy for investors who value stability over excitement — and prefer reliable cashflow.
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