A diagonal put spread which involves selling a higher-strike put option and buying a lower-strike put option, with the overall position being executed as a credit. In other words, this position is based on the sale of an out-of-the-money near-month option and the purchase of an at -the-money far-month option. For example, a trader may sell one XYZ March 50 put and buy one XYZ April 45 put.

The short diagonal put spread is also referred to as a diagonal put bull spread.