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Diagonal Spread

外汇网2021-06-19 13:45:37 82
An options strategy established by simultaneously entering into a long and short position in two options of the same type (two call options or two put options) but with different strike prices and expiration dates.

This strategy is called a diagonal spad because it combines a horizontal spad, which repsents the difference in expiration dates, with a vertical spad, which repsents the difference in strike prices. An example of a diagonal spad is the purchase of a December $20 call option and the sale of an April $25 call.

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