Options strategy setups — how traders structure each trade

The calculators tell you what a trade pays. This page tells you how to set it up: the target days to expiration, the strike or delta to sell, the volatility you want at entry, when to take profit and when to get out — for the ten strategies sellers reach for most. Each links straight to its calculator so you can price your own version.

Starting points, not rules. These are the conventions experienced sellers reach for first — widely taught, not gospel. Your account size, your thesis and your risk tolerance move every number on this page. If a setup doesn't fit a trade you'd actually take, skip it. Educational, not advice.

Iron Condor

Outlook: Neutral and short volatility: you want the stock to chop sideways inside a range while elevated implied volatility deflates.

Ideal DTE: 30–45 days is the default; long enough that theta is meaningful, short enough that a quiet stock can't drift far. Go shorter only on a liquid index you'll babysit; longer just ties up buying power for slower decay.
Strike selection: Sell both short strikes outside the expected move — the ~15–20 delta short Put and short Call are the common anchors. Then size the wings so the net credit is about one-third of the spread width (collect ~$3.00–3.50 on a $10 wing); wider wings pay more but raise the max loss you have to survive.
Enter when: Only when IV Rank is elevated (roughly 50+) — you're selling expensive volatility expecting it to fall. Sell a condor at low IV Rank and you get a thin credit and a narrow zone for the same defined risk: the worst trade on the board.
Take profit: Close at ~50% of the max credit rather than squeezing the last dollar. The zone is wide and forgiving, so 50% is the right line here — but the final half decays slowest and carries the most gamma and pin risk near the short strikes.
Manage / exit: At ~21 DTE, close or roll regardless of P&L — that's where gamma turns a quiet stock into an overnight breach. If price tests a short strike before then, defend the tested side (roll it out or close the whole condor); don't add to a loser.
Hard skip: No earnings or known catalyst inside the expiration. A condor's one un-survivable event is a gap straight through a short strike, and an earnings date is exactly that risk on a calendar.

Use it when: A liquid, range-bound stock or index with elevated IV Rank and no catalyst ahead — you're paid twice for the same buying power to bet it stays put.

Skip it when: You have a directional lean (sell a single Bull Put Spread or Bear Call Spread instead of opening a second front you don't believe in), or IV Rank is low and the credit is thin.

Open the Iron Condor Calculator →

Iron Butterfly

Outlook: Dead-still and overpriced: you expect the stock to pin one specific strike by expiration while elevated implied volatility deflates.

Ideal DTE: 30–45 days. That window puts you on the steep part of the theta curve while still leaving room to react if the body gets tested. Go shorter (a weekly or 0DTE) only if you'll babysit it — gamma whips a narrow-zone trade hard near expiry.
Strike selection: Sell the body at-the-money — the ~0.50-delta short straddle is the engine — then set both wings out to the expected move so a one-sigma drift doesn't blow through them. Keep the wings the same width so max loss is identical on either side. Wider wings collect more credit and risk more; narrower wings cap the risk but turn a small move into a full loss.
Enter when: IV Rank above 50, ideally above 70. The credit is the entire payoff, so a thin one buys you a tiny profit zone for the same capped risk. First ask why IV is high — if an earnings report or a ruling lands inside your expiration, the fat credit is paying for the exact move that breaks you.
Take profit: Close around 25% of the credit — stretch to 40–50% only if the stock is sitting right on the body. This is an at-the-money credit trade with a narrow zone, so there's a lot to give back: max profit needs a perfect pin at expiration. (Contrast a wide condor, where 50% is fine — the zone there is forgiving.)
Manage / exit: Roll or close by ~21 DTE, or sooner if price tests a breakeven. Past 21 DTE, gamma risk outruns the remaining theta on a tight tent. Don't 'defend' a tested butterfly by widening into the move — take the defined loss and reset.
Position size: Size it small — this is a high-reward, lower-probability bet on one price, not a core income trade. One position should never be able to hurt the account when the stock walks off the body.

Use it when: You have a real conviction the stock settles at a specific level — a pin from heavy open interest, a magnet strike, a post-event drift to fair value — and IV is rich enough to pay a large credit for that precision.

Skip it when: You only expect a vague range rather than a pin — widen the short strikes into an Iron Condor for a forgiving zone — or you expect an actual move, which turns the tight profit band into a fast full loss.

Open the Iron Butterfly Calculator →

Bull Put Spread

Outlook: Bullish-to-neutral with rich premium: you want the stock to hold above your short strike, and you want elevated implied volatility fattening the credit you collect.

Ideal DTE: 30–45 days is the usual entry window — long enough that the credit is worth collecting, short enough that decay does real work. Go shorter only on a level you trust; gamma whips a 7-day spread around far harder near the strike.
Strike selection: Sell the short Put around 0.20–0.30 delta and keep it below a support level you actually believe in — that band trades premium against assignment odds. Then pick the wing width: set the long Put a chosen width below, with a $5 wide spread the common default — a wider wing collects more credit but risks more dollars.
Enter when: Sell when IV Rank is elevated (above 50 is rich, below 30 is thin) so the credit pays you for the risk. Skip below ~20–25 IV Rank — you'd be selling cheap premium into a defined-risk loss, the worst trade on the board.
Take profit: Close at roughly 50% of the credit rather than squeezing the last dollar. On a vertical the zone is wide enough that 50% is the standard line; the final increment of decay pays the least and carries the most gamma.
Manage / exit: Roll or close at about 21 DTE, whichever comes first with the profit target. If the stock breaks support and tags the short strike early, take the defined loss; don't roll a tested Put down and out into a falling knife just to avoid booking it.
Strike vs the expected move: Set the short strike outside the expected move for the expiration, not just at a delta that looks safe. A strike inside the expected move is one ordinary move from being tested — the calculator's probability-of-profit readout estimates which side of that line you're on.

Use it when: You're bullish-to-neutral on a name you don't need to own, IV Rank is elevated, and you want defined risk for a few hundred dollars of capital instead of the thousands a Cash-Secured Put ties up.

Skip it when: You'd genuinely be happy owning the shares — sell a Cash-Secured Put and let assignment be the plan — or the stock is in a clear downtrend, where selling Puts into a falling knife only caps the pain.

Open the Bull Put Spread Calculator →

Call Spread

Outlook: As an income seller you run the Bear Call (credit) version: neutral-to-bearish, betting the stock stalls below a level, and you want elevated implied volatility so the premium you collect is fat.

Ideal DTE: 30–45 days is the income-seller default — long enough that theta does real work, short enough that you're not married to a guess. Go shorter only when you want decay to bite fast and you'll accept the gamma near expiry.
Strike selection: Sell the short call around 0.30 delta — delta is a rough proxy for the odds, so that's roughly a 70% chance it finishes worthless, not a guarantee — and buy the long call $5–$10 higher to cap the loss. A lower-delta short strike (~0.20) wins more often for a smaller credit; a higher-delta one (~0.40) pays more but sits closer to the money. Keep the short strike above a real level — a prior high or resistance.
Enter when: Sell the credit spread when IV Rank is elevated (the common cut is above 50) so you're paid richly for the range you're selling. Selling premium into cheap IV is picking up pennies in front of the same steamroller — check the IV Rank Calculator first.
Take profit: Close the Bear Call once you've kept about 50% of the credit. On a vertical the zone is wide enough that 50% is the right line; the last half of a short premium trade grinds out slowest for the most risk.
Manage / exit: Roll or close near 21 DTE, or sooner if the stock pushes up through your short strike. A tested short call going in-the-money — especially before an ex-dividend date — invites early assignment; don't white-knuckle it to expiration.

Use it when: You expect a stock to stall or drift below a clear resistance level, IV is rich, and you want defined-risk income with time decay on your side rather than betting on a move.

Skip it when: Skip the Bear Call credit in a strong uptrend; if you actually expect the stock to climb, run the Bull Call debit version of this same spread instead of selling premium against it.

Open the Call Spread Calculator →

Butterfly Spread

Outlook: A pinpoint-neutral bet: you think the stock parks at one exact price by expiration AND that today's volatility is too rich and about to cool. A long butterfly is net-short vega, so falling IV works for you — you want IV elevated going in, not cheap.

Ideal DTE: 21–45 days is the usual window. Inside ~21 days there's no time for the stock to drift to the body or for theta to build the tent; much further out and decay barely works yet. Go shorter only with a strong pin-the-strike view into a near-dated event.
Strike selection: Place the body where you expect the stock to land, then set both wings the same width — roughly one expected move out, so the breakevens sit just past where price realistically travels. Wings too narrow and a normal day blows through them; too wide and you've overpaid the debit for a payoff you'll never see.
Enter when: Enter when IV is high and you expect it to fall — IV Rank above ~40. A long butterfly is net-short vega, so an IV drop lifts the tent for you, and the rich body options you sell cushion the debit. Don't be talked out of one because the debit looks pricey in high IV — the real trap is buying a fly in dead-low IV with nothing left to contract.
Take profit: Close at ~25–50% of max profit and walk. The peak only pays in full if the stock pins the body at the bell — the zone is narrow, so chasing the last dollars means holding a position whose value evaporates the moment price drifts off the body.
Manage / exit: Let it work — most of the value shows up late as price drifts toward the body. (This is the one fly managed by time-to-expiry, not the 21-DTE rule — a long debit fly needs the late drift to pay.) Close it in the last ~7–10 days to bank the value and dodge pin/gamma risk, but cut sooner if price punches past a wing.
Cost check: A 1-2-1 butterfly opens four contracts and closes four more — eight legs of commission and bid-ask against a small debit. Skip the trade if fills and fees eat a meaningful slice of the thin edge you're paying for.

Use it when: You have a specific, high-conviction view that a stock pins one price into a quiet expiration AND IV is rich and likely to cool — a small, defined debit for a lopsided payoff if you're right.

Skip it when: You expect a real move, or IV is already dead-low with nothing left to contract — reach for an Iron Condor for a wide forgiving zone, or sell premium outright if you'd rather be paid the credit.

Open the Butterfly Spread Calculator →

Broken Wing Butterfly

Outlook: A directional lean with a vol-down bias: you want the stock to drift toward the body and settle in its neighborhood, not lurch through your wide wing. You win across a broad zone, not just on a perfect pin. Puts lean bullish (no upside risk), Calls lean bearish (no downside risk).

Ideal DTE: 30–45 days is the default; many put-BWB traders enter nearer 21 days. Closer in, gamma turns the body into a tripwire; much further out, the body barely decays and your capital sits dead.
Strike selection: Place the short body near where you expect the stock to land — around at-the-money or one expected move out — and skew the wings so the wide side is the direction you're fine being wrong about. Size the body to the move with the Expected Move Calculator, not by eyeballing strikes.
Enter when: Sell it for a net credit, which means selling richness: IV Rank above ~30 is the usual bar. Open it in dead-flat IV and a thin credit barely covers four-leg commissions.
Take profit: Close for a multiple of the credit you took in — roughly 2–3× is the common bar — rather than holding for max profit. Max profit needs a near-perfect pin that rarely holds. Rolling the wide wing in to a balanced fly for less than the credit is another way to bank a 'free' position.
Manage / exit: Around ~21 DTE the body's gamma gets violent, so close or roll before then. The trigger that matters is the wide wing: a common rule is to bail when the short-body delta on that side breaches ~0.30, or when the loss reaches about 2× the credit. Don't add risk to defend it.
Assignment watch: Two short options sit at the body. An in-the-money body near expiration can be assigned early — close the body before it goes deep ITM into expiration week.

Use it when: You have a directional lean and want a credit (or near-zero-cost) entry with the risk parked entirely on the side you're comfortable being wrong about — and a defined max loss.

Skip it when: You expect a clean pin at one price with no lean — reach for a balanced Butterfly Spread — or you want premium on both sides of the range, where an Iron Condor or Iron Butterfly fits better.

Open the Broken Wing Butterfly Calculator →

Calendar Spread

Outlook: You want the stock to sit near one strike through the near expiry, with front-month IV rich relative to the back (a steep term structure) so the option you sell is the expensive one. Direction-neutral, net long vega, paid by the front leg decaying faster than the back.

Front / back DTE: Sell the front leg in the 30–45 DTE window where decay is steepest, and buy a back leg roughly twice as far out (about 60–90 DTE). Too tight a gap and the legs decay together; too wide and you overpay for back-month vega. Widen the gap for more vega, tighten it for a purer theta bet.
Strike selection: Site the strike where you expect the stock to sit at the front expiry — the profit peak is at the strike. At-the-money (~0.50 delta) is the neutral default; nudge it out to lean directional. Pick a strike inside the expected move, not at the edge.
Enter when: Open when front-month IV is rich relative to the back month — a steep term structure — so the option you sell is overpriced versus the one you buy. The position is net long vega, so be wary of opening it when overall IV Rank is already high and primed to fall: a broad vol drop helps the front leg but hurts the back. The edge you want is the front month being the expensive leg, not the whole curve being high.
Take profit: Close near 25–50% of the debit's estimated peak gain rather than chasing the theoretical maximum. The peak only prints if the stock pins the strike exactly at the front expiry. Closer to 25% if commissions on two legs eat the gain.
Manage / exit: Exit before the front leg's final week — around 21 DTE on the short leg — where gamma and pin risk swamp the theta edge. Cut it if the stock breaks past either breakeven, or roll the front leg out to reset the decay clock if your thesis holds. Watch the short leg for early assignment around ex-dividend dates.
Avoid: Don't run a calendar through earnings unless that IS the trade. The danger isn't the vol crush itself — the front-month leg gets crushed harder, which can help — it's the post-report price gap that jumps the stock out of the narrow profit band. If you trade earnings deliberately, sell front-month IV that expires after the report and size for the move; otherwise close before the announcement.

Use it when: You expect a quiet, range-bound stock to sit near a level and front-month IV is rich versus the back month — a cheap, defined-risk way to sell time decay with the expensive leg on the short side.

Skip it when: You expect a big directional move or gap that would jump the stock out of the narrow profit band — reach instead for a vertical whose payoff is fixed and not at the mercy of where the stock lands or what volatility does.

Open the Calendar Spread Calculator →

Diagonal Spread

Outlook: A slow drift your way, not a sprint: a Call Diagonal wants the stock grinding up, a Put Diagonal grinding down — and because you own more time than you sold, you want IV stable-to-rising, not crushing.

Ideal DTE (short / long): Sell the near leg at 30–45 DTE so theta is biting; buy the far leg 2–3× further out (60–120 DTE) so it barely decays while the short rots. A PMCC stretches the long leg to a LEAPS. Close the DTE gap and it behaves like a vertical, not a diagonal.
Strike selection: Short strike out near the 30-delta line — roughly one expected move away, where you collect real premium but the stock has room to drift in before it pins you. Keep the strike width wider than the net debit, or you cap your own upside (Call) or downside (Put) before the trade can pay.
LEAPS / long-leg delta (PMCC): If you run it as a Poor Man's Covered Call, buy the long call deep ITM at 0.80+ delta so it tracks the stock like shares. A 0.50-delta long leg is a lottery ticket, not a stock substitute — it lags the short call on a rally and bleeds time value.
Enter when: IV Rank low-to-moderate (roughly under 50) with room to rise. You're net long vega — you own more time than you sold — so a high-IV entry that mean-reverts down crushes the far leg harder than it helps the near one. This is the opposite of a premium-selling entry.
Take profit: Bank it at 25–50% of the debit you risked. The far leg's value at the near expiry is only a Black-Scholes estimate that swings with IV, so don't hold out for the modeled peak — a vol dip can erase a paper win that never settled.
Manage / exit: Close or roll the short leg at 50% of its premium OR 21 DTE, whichever hits first, to dodge late-cycle gamma — then resell against the still-alive long. Roll the tested side away (Call up, Put down) before the short goes deep ITM; an ITM short near an ex-dividend date is the classic early-assignment trap.

Use it when: You have a direction AND a timeline — you expect a gentle drift your way over weeks while you finance it by selling decay against a longer-dated leg you keep.

Skip it when: Your view is sharp and urgent (buy a Long Call or a vertical instead) or dead neutral (run a plain Calendar Spread) — and never hold the long leg through earnings, where the vol crush hits it hardest.

Open the Diagonal Spread Calculator →

Poor Man's Covered Call

Outlook: Moderately bullish and range-aware: you want the stock to grind up toward the short strike, not rocket past it, and you sell each short call into richer, not cheaper, volatility.

LEAPS delta (the long leg): Buy the long call deep in the money, delta 0.80+, so it tracks the stock nearly point-for-point and pays little time value. The wrong move is reaching for a cheaper 0.60-delta call — it behaves like a lottery ticket, not shares. Go deeper (0.85–0.90) on a choppier name where you need it to act more like stock.
Long DTE: 12–24 months on the LEAPS, because long-dated calls decay slowly and give you many short-call cycles before you must roll. Shorter than ~6 months and the long leg's own decay starts eating the credits. The LEAPS isn't permanent — plan to roll it out well before expiry.
Short call (the income leg): Sell the short call 30–45 DTE, out of the money, struck above breakeven (long strike + net debit). That window is where theta accelerates, so you collect the credit fast and reset often. Sell it inside breakeven and the trade literally cannot profit — the calculator flags this. Pull it in tighter to dodge an earnings date, and pick the strike near the top of the range you expect.
Enter when: Open it when the short call is rich, not cheap — IV elevated (think IV Rank ~50+) on a name you'd be content to control. You're a net seller on the income leg, so dead-flat volatility means collecting scraps against a LEAPS that still decays. Skip when premium is thin, or when IV is fat only because earnings or a catalyst is pricing in a gap.
Take profit: Buy back the short call at ~50% of the credit, then sell the next cycle — the last bit of premium decays slowly and isn't worth the assignment/gap risk. The LEAPS you let run; this target is for the short leg only. In very low IV you can let a near-worthless short call ride closer to expiry.
Manage / exit: Roll the short call up and out when the stock rallies near or through it — a fast move past the short strike squeezes the diagonal because the short call's losses outrun the LEAPS' gains until you adjust. Watch ex-dividend dates, when early assignment spikes. Close the whole position if your read on the stock breaks; max loss is the net debit, but it's real money.

Use it when: You want covered-call income on a stock you'd own but don't want to tie up the full price of 100 shares — the LEAPS controls the same exposure for a quarter of the capital with the loss floored at the net debit.

Skip it when: You actually want the shares and their dividends, or you expect a sharp rally — the short call caps you, the LEAPS pays no dividend, and a real Covered Call is simpler and squeeze-proof.

Open the Poor Man's Covered Call Calculator →

Straddle

Outlook: Two trades wear one name. Long, you buy the Call and Put for a big move you can't direction-call; short, the income-seller sells both to bet the stock pins the strike and volatility falls. This site's calculator is the long version — the short side is undefined-risk and we don't publish a tool for it.

Ideal DTE: Long: 30–60 DTE so a slow mover still has runway before theta bites. Short (the income version): 30–45 DTE — the window where premium decays fastest without holding gamma into expiration week. Earnings plays are the exception: 1–7 DTE, in and out around the event.
Strike selection: At-the-money on both legs, full stop — that's what makes it a Straddle (a Strangle moves the strikes out-of-the-money, cheaper but needs a bigger move). The single ATM strike buys the tightest breakevens and, sold, collects the fattest credit.
Enter when (IV): Opposite signals for the two sides. Long: only when IV Rank is low (under ~30) and you think the coming move is underpriced — long volatility hates rich IV. Short: only when IV Rank is elevated (~50+), so you're selling premium that's likely to deflate. Selling a Straddle into cheap IV is collecting pennies in front of the steamroller.
Take profit: Long: no fixed target — the move clears a breakeven or it doesn't; take it off when the catalyst is spent. Short: close around ~25% of the credit. It's a narrow ATM structure pinned to one point, so the last bit of premium isn't worth the gamma risk — 50% is a Strangle/spread target, not a knife-edge Straddle one.
Manage / exit: Long: exit before the post-event IV crush, not after — the stock can move as expected and you still lose if both legs deflate. Short: manage by ~21 DTE no matter what the P&L says; that's where gamma on an ATM position turns a small loss into a large one fast.
Defining risk: The short Straddle is naked on both sides — a naked Call (theoretically unlimited loss up) plus a naked Put (loss the whole way to zero). One earnings surprise, buyout, or overnight gap can cost many times the credit. To model the short side, use the Short Strangle & Straddle calculator (with its undefined-risk warning). Want a floor under it? Add wings — that's an Iron Butterfly.

Use it when: You expect a big move but genuinely can't call the direction — earnings, a court ruling, an FDA decision — and the expected move is large relative to the combined premium. Buy it long when IV Rank is low so you're not overpaying for the move.

Skip it when: Skip the long Straddle when IV is already rich or the catalyst is days away — the post-event IV crush can sink it even if the stock moves your way. Skip the short (naked) Straddle entirely in a retail account; if you want the sell-premium income, trade the defined-risk Iron Butterfly instead.

Open the Straddle Calculator →

Jade Lizard

Outlook: Neutral-to-bullish with rich premium: you want the stock to hold up or drift higher, you'd own it at the put strike, and you want the total credit to cover the call spread so the upside can't hurt you.

Ideal DTE: 30–45 days — the standard premium-selling window where theta does real work and you can still react. Go shorter only on a name you'll watch closely.
Strike selection: Sell the put around 0.30 delta, below a support you actually believe in. Then build a NARROW call spread above — short call near 0.20–0.30 delta, long call only $1–3 higher. The narrow call spread is what lets the credit exceed its width.
The no-upside-risk rule: Size it so the total net credit is at least the call-spread width — that is the whole point. A credit below the width leaves upside risk. Rich put premium plus a narrow call spread is what gets you there; the calculator flags whether your setup clears the bar.
Enter when: IV Rank elevated (roughly 50+) so both the put and the call are rich — a fat put credit is what covers a narrow call spread. In thin IV the no-upside-risk structure is hard to build and barely pays.
Take profit: Close around 50% of the credit, like a cash-secured put — the back half decays slowest and the gamma near the short put isn't worth squeezing.
Manage / exit: Manage the short put like any cash-secured put: at ~21 DTE, or sooner if it's tested, roll it or take assignment. The capped call spread usually takes care of itself — don't let a tested put ride into expiration.

Use it when: You're neutral-to-bullish on a stock you'd happily own at the put strike, IV is rich, and you want premium income with the upside risk removed.

Skip it when: You're outright bearish or expect a sharp drop — the downside is open like a cash-secured put — or IV is too thin for the credit to cover the call width.

Open the Jade Lizard Calculator →

Short Strangle

Outlook: Neutral and short volatility, with eyes open: you want the stock to sit between your strikes while elevated IV deflates — and you accept undefined risk on BOTH tails. This is the most dangerous trade on the site.

Ideal DTE: 30–45 days — the premium-selling sweet spot. Never hold a naked strangle into the final gamma week; the math turns violent.
Strike selection: Sell both strikes OUTSIDE the expected move — roughly 0.15–0.20 delta each is the common anchor — for a wide profit zone. A short straddle (both at-the-money) collects far more but needs a near-perfect pin.
Enter when: Only when IV Rank is high (50+, ideally higher) — you're selling expensive volatility expecting it to fall. Selling a strangle into cheap IV is the worst version of an already-dangerous trade.
Take profit: Close at ~25% of the credit and don't get greedy — the last of the premium is the least reward for the most (undefined) risk. The win is small; the rare loss is not.
Manage / exit: Manage by ~21 DTE no matter what, and roll the tested side out before a breach. Set a hard stop — a loss of about 1–2× the credit — and honor it; there is no defined max loss to fall back on.
Hard rules: No earnings or known catalyst inside the expiration, and size TINY — one position should never be able to threaten the account. With undefined tails, position sizing is the only real risk control.

Use it when: A liquid, range-bound underlying with high IV Rank and no catalyst, in an account that has the approval, the margin and the discipline to manage undefined risk actively.

Skip it when: You can't actively manage it, IV is low, a catalyst is near, or you'd be sized so one gap could hurt the account — reach for a defined-risk Iron Condor instead.

Open the Short Strangle Calculator →

Big Lizard

Outlook: Neutral and short volatility, expecting the stock to pin a level: you sell the at-the-money straddle and cap the call side for a fat credit, and you'd own the stock at the body strike if it falls.

Ideal DTE: 30–45 days — the premium-selling window. The at-the-money body carries heavy gamma, so don't hold it into the final week.
Strike selection: Sell the straddle AT the money (the body), then buy a call a few strikes higher — a narrow $3–5 call spread — so the big ATM credit easily covers the call width. A narrower call spread leaves more cushion over the no-upside-risk line.
The no-upside-risk rule: Net credit ≥ call-spread width. An ATM straddle collects so much that this is usually easy; the calculator confirms it. If it doesn't clear, narrow the call spread.
Enter when: IV Rank high (50+, ideally higher) — the whole edge is a rich at-the-money straddle. In low IV the body barely pays and the structure loses its point.
Take profit: Close at ~25% of the credit — like an iron butterfly, max profit needs a near-perfect pin at the body, so don't be greedy with a narrow, gamma-heavy structure.
Manage / exit: Manage by ~21 DTE; the ATM body's gamma turns violent near expiry. Treat the short put like a cash-secured put if it's tested — roll or take assignment. Size small: the ATM downside is larger than a jade lizard's.

Use it when: You're neutral and expect the stock to pin a level, IV is rich, and you'd own it at the body strike — you want the largest credit with the upside risk removed.

Skip it when: You have any directional lean (the symmetric body wants a pin), IV is thin, or you wouldn't want the shares — the at-the-money downside is real.

Open the Big Lizard Calculator →

Twisted Sister

Outlook: Neutral-to-bearish, with eyes open: the mirror of a jade lizard. A put spread removes the downside risk and you keep premium if the stock stays flat or falls — but the naked short call leaves UNLIMITED upside risk, so only on a name you're confident won't rip higher.

Ideal DTE: 30–45 days. Never hold the naked call into the final gamma week, and roll it well before the stock pressures the strike.
Strike selection: Sell the short call around 0.30 delta above a resistance you trust. Then build a NARROW put spread below — short put ~0.20–0.30 delta, long put $1–3 lower — sized so the credit covers the put width and removes the downside risk.
The no-downside-risk rule: Net credit ≥ put-spread width. That deletes the downside; the calculator flags whether you clear it. The danger that remains — the naked call — is the one you must manage.
Enter when: IV Rank high (50+) AND no upside catalyst — no earnings, no buyout chatter, no squeeze setup. You're selling a naked call, so anything that can gap the stock up is disqualifying.
Take profit: Close at ~50% of the credit. The win is capped at the credit and the loss is open-ended, so bank it and reset rather than holding for the last dollar.
Manage / exit: The naked call IS the risk: roll it up and out before the stock reaches the strike, and set a hard stop (a loss of about 1–2× the credit). Size tiny — with an unlimited tail, position sizing is the only real control.

Use it when: A liquid, neutral-to-bearish name with high IV and no upside catalyst, in an account with naked-call approval, margin and the discipline to manage the call actively.

Skip it when: You're bullish, the stock could be acquired / squeezed / gapped up, IV is low, or you can't babysit the naked call — use a defined-risk Iron Condor instead.

Open the Twisted Sister Calculator →