Big Lizard

A big lizard is an advanced four-leg strategy that combines short call and put spreads to create enhanced income generation with defined risk on both sides, making it the ultimate professional income strategy for range-bound markets. This sophisticated strategy involves selling out-of-the-money call and put spreads simultaneously, creating a position that profits from sideways movement while maintaining limited risk exposure regardless of market direction. The strategy is particularly effective in high implied volatility environments where substantial premium can be collected from both spreads while maintaining professional risk management standards. Big lizards offer superior risk-adjusted returns compared to iron condors due to their enhanced premium collection capabilities and more favorable breakeven points. Professional traders use this strategy when they expect the underlying to remain within a defined range while wanting to maximize income from volatility compression. The defined risk characteristics make it suitable for institutional portfolio management

If NIFTY is at ₹25,800, set up: Sell ₹26,200 Call for ₹60, Buy ₹26,400 Call for ₹35, Sell ₹25,400 Put for ₹55, Buy ₹25,200 Put for ₹30, creating ₹50 net credit with maximum profit if NIFTY stays between ₹25,400-₹26,200 and limited risk of ₹150 on either side.