#diagonal spread

[signode-blog]

Effective Trading Strategies Using Diagonal Spread Option Trading Strategy

The Diagonal Spread Option Trading Strategy is a versatile and powerful approach that combines elements of calendar spreads and vertical spreads. By leveraging different strike prices and expiration dates, traders can navigate various market conditions, including volatile markets, bull markets, bear markets, and markets in consolidation. This guide explores several effective strategies using…

Effective Trading Strategies Using Diagonal Spread Option Trading Strategy

[kingstontrader]

BP Long-term Diagonal Spread initiated.

New Half Position June 26

For my rationale for entering this trade check out these backgrounders here and here.

Opened Position

BTO 5 Jan 2014 35 Calls for $6.00 per contract total cost = $-3016.75 (delta 0.72)

STO 5 July 40 Calls for $0.31 = $138.75 (delta 0.25)

I will be setting up a separate spreadsheet to track this trade as the data piles up.

If the stock drops a couple dollars to around $35-$36, I will look to open up another 5 contracts. My goal is to have 10x contracts on theses BP Diagonal spreads.