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Diagonal spread

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diagonal spread investment & finance definition
The price spread between two call options or two put options with different strike prices and different expiration dates. See also spread, diagonal bear spread, and diagonal bull spread.

 


Diagonal Spreads
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Diagonal Spread
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.
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Testing Diagonal Spreads with Whatifi.Xls
Diagonal spreads can be tricky, so you need to fully understand how they are likely to behave before using them. We recommend that you use our template Whatifi.

Diagonal spread. A compound option strategy that consists of several same-type options, in which the long side and the short side have different strike prices and different expirations.

Diagonal Spread
A spread of the same class of options but with different exercise prices and different expiration dates.
Difference from S&P
A mutual fund's return minus the performance in the Standard & Poor's 500 Index for the same period.

Diagonal Spread: A strategy involving the simultaneous purchase and sale of two options of the same type that have different strike prices and different expiration dates.

Diagonal Spread: A spread between two call options or two put options with different strike prices and different expiration dates. See Horizontal Spread, Vertical Spread.

Diagonal spread
The Diagonal spread can be a very effective way to pull monthly income out of the stock market and keep have long term gain as well.

Diagonal Spread - Any spread in which the purchased options have a longer maturity than do the written options as well as having different striking prices.

Diagonal Spread - An options spread on the same underlying, same type but different expiration month and strike. Read the Diagonal Spread Tutorial.

Diagonal spread
An options strategy requiring a long and a short position in the same class of option at different strike prices and different expiration dates. For example, two puts or two calls in the same stock.

Diagonal Spread: A two-sided spread consisting of options with different strike prices and with different expiration dates. These options must be of the same type and have the same un~~~. .

Diagonal spread: An options spread position in which both the strike prices and the expiration months differ.
Dilution: Reduction of the percentage ownership of the existing shareholders through the sale of more stock by the corporation.

diagonal spread An option strategy with two possible actions, a put and a call, with different expiration dates and strike prices. Diamonds These are shares in a trust representing all thirty stocks in the Dow Jones...

for the same expiration month but different strikes, called a vertical spread, for the same strike price but different months, called a horizontal or calendar spread, or can have different strikes and different expirations called a diagonal spread.

Diagonal Spread A position in which the trader buys and sells options with different strike prices and expirations. For example, a diagonal spread could be created by buying one July 75 call and selling one June 70 call.

A favorite strategy for cash-producing, slow-moving, fairly valued big blue chip companies is the diagonal spread.

Call (business term)
Yield to Call (finance term)
Strike Price (business term)
Put-Call Parity (finance term)
Diagonal Spread (finance term)
Selling the Spread (finance term)
Buy and Write Strategy (finance term) ...

An option spread involving the simultaneous purchase and sale of options of the same class and strike prices but different expiration dates. See also: Diagonal Spread, Vertical Spread.
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I actually do not know what this type of spread would be called. I checked Natenburg's Option Volatility and Pricing and couldn't find it mentioned there either. I would guess that it's just a type of diagonal spread.

First of all, what are the traditional, income, option trading strategies? The most common ones are: the Iron Condor, the Calendar Spread, Butterfly Spreads, Credit Spread, Diagonal Spread , and Covered Calls.

Diagonal spread : A compound option strategy that consists of several sam...
Diamond : A minor reversal pattern that resembles a diamond shape.
Direct dealing : An aggressive approach in which banks contact each other...

See also: Diagonal, Option, Options, Strike Price, Expiration

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