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.

0:20 - Different Ways To Manage Diagonal Spreads
1:10 - Scenario Of Never Touching The Trade
1:44 - P&L Associated With Both Trades
2:25 - Lowering Effective Purchase Price
2:54 - Limited Decay Potential In Near-Term Options