Long Call Diagonal Calendar Spread

Portfolios
Granular Portfolio
January 24, 2023
Finance
Synthetic
January 24, 2023

call diagonal calendar spread that is designed to profit when the underlying remains relatively stable over a specific period of time. It allows investors to tap into maximum potential profit when the underlying asset stays unchanged to the extent that the extrinsic values of the long-term call options build up.

This strategy involves buying long-term at-the-money call options and selling short-term out-of-the-money call options, all on the same underlying.

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