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Diagonal spread |
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Diagonal spreadAn options strategy requiring a long and a short position in the same class of option at different strike prices and different expiration dates. For example, two puts or two calls in the same stock. See: Calendar spread; vertical spread.Diagonal spreadAn options strategy involving the simultaneous purchase and writing of two options of the same type that have different strike prices and different expiration dates. Example: buying 1 Dec 50 call and writing 1 Oct 55 call. |
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