Best Practices

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Skew and the Lizards

Best Practices

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

A Jade Lizard combines a short out-the-money (OTM) put with a short OTM call spread for a total credit that is greater than the width of the call spread.

One benefit over strangles is it takes advantage of volatility skew.

In the segment today Beef joins Liz and Jenny, and dives into what we mean by volatility skew. If you are looking to learn more about when to use a Jade Lizard, this is definitely a segment you do not want to miss!