Abstract We consider a quantum endoreversible Otto engine cycle and its inverse operation-Otto refrigeration cycle, employing two-level systems as the working substance and operating in dual-squeezed reservoirs. We demonstrate that the efficiency of heat engines at maximum work output and the coefficient of performance for refrigerators at the maximum χ criterion will degenerate to η − = η C/(2 – η C) and ε − = ( 9 + 8 ε C − 3 ) / 2 when symmetric squeezing is satisfied, respectively. We also investigated the influences of squeezing degree on the performance optimization of quantum Otto heat engines at the maximum work output and refrigerators at the maximum χ criterion. These analytical results show that the efficiency of heat engines at maximum work output and the coefficient of performance for refrigerators at the maximum χ criterion can be improved, reduced or even inhibited in asymmetric squeezing. Furthermore, we also find that the efficiency of quantum Otto heat engines at maximum work output is lower than that obtained from the Otto heat engines based on a single harmonic oscillator system. However, the coefficient of performance of the corresponding refrigerator is higher.