Diagonal Spread
Definition
An options strategy using different strike prices and different expiration dates, combining elements of vertical and calendar spreads.
Example
A diagonal call spread benefits from both time decay and moderate upward movement.
Related Terms
Frequently Asked Question
What is a Diagonal Spread?
A Diagonal Spread uses options with both different strike prices and different expiration dates. It combines elements of vertical spreads (different strikes) and calendar spreads (different expirations) to profit from time decay and directional movement.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.