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April 4, 2023
Derivatives

Short Diagonal Call Spread

April 4, 2023

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A volatility spread (specifically a time spread) that involves selling a far-month option and buying a near-month option where all options are of the same type (all calls or all puts) and have the same strike price. For example, an investor may long 25 April 100 puts and short 25 July 100 puts.

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