Video Library

Diagonal Spreads

Diagonal spreads have elements of vertical spreads and calendar spreads in them. In this section, examine the potential flexibility and risk control measures necessary when considering the diagonal spread as a strategy. 

Entering a Diagonal Spread

A diagonal spread combines two elements — a time spread and a vertical spread.

0:03 - Understanding Time Spread Terminology
0:34 - Long Call Option Strike Characteristics
0:51 - Delta Exposure In Diagonal Spreads
1:16 - Short Call Aspect Of Diagonal Spreads
1:51 - Combining Vertical And Time Spread Elements

Rolling a Diagonal

Learn why many investors may look at rolling a spread as a way to lower their effective purchase price through this hypothetical example.

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Navigating Diagonal Spreads

It can be difficult to get a perfectly defined profit and loss graph on a diagonal spread. Learn why.

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