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Granular Portfolio

January 24, 2023
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Synthetic

January 24, 2023

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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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