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Diagonal Straddle Calendar Spread


An option trading strategy (a straddle calendar spread) whereby a near-month straddle is sold at a set strike and a far-month straddle is bought at a different strike. Differently stated, this strategy is constructed by selling a near-month put and a near-month call and simultaneously buying a far-month put and a far-month call, with all the options traded being on the same underlying and having the same expiration date.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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