Advertising

Diagonal spread

• Is the purchase and sale of puts or calls for the same instrument but for different strike prices and different delivery dates. These strategies can be done for debits or credits. Also, they are bullish or bearish depending on the relationship of the purchased to sold strike price. When the lower strike is purchased and the higher strike is sold then the strategy has a bullish configuration. When the lower strike is sold and the higher strike is purchased then the strategy has a bearish configuration.

 
 

Follow this link for all the terms related to spread.

 
 Embedded terms in definition
 Bearish
Bullish
Delivery
Prices
Purchase and sale
Purchase
Sale
Strike price
 
 Related Terms
 

<< Devaluation Difference from s&p >>

Managing Your Expenses on a Fixed or Reduced Income: Once you've retired, you finally have the opportunity to work at your dream job - keeping yourself happy. It's your chance to visit places you've always wanted to see, take up a new hobby and spend more time with your family and friends. But to be successful at this new position, you've got to make the most of your income and investments. Here are suggestions. More...

What lies behind us and what lies before us are tiny matters compared to what lies within us. - Ralph Waldo Emerson (1803-1882)

Advertising



Copyright 2009-2018 GVC. All rights reserved.