Double Diagonal Spread

Description

Simultaneously establishing a Call diagonal and a Put diagonal.

Trading Logic

Combines features of calendar spreads and strangles.

Practical Example

Stock at $100. Establish $90P diagonal and $110C diagonal.

P/L Curve

Chart Description
  • X-Axis: Stock price at expiration
  • Y-Axis: Expected P/L ($)
  • Green area: Profit; Red area: Loss