Options Glossary

Glossary: Diagonal Call Time Spread

Last Updated: July 12, 2015


Diagonal Call Time Spread

What Does Diagonal Call Time Spread Mean in Options Trading?

A call options trading strategy in which a neutralized position is established by writing high premium near month out of the money calls and buying simultaneously further month at the money call option contracts to take advantage of time decay of near term calls. The months and the strike price of the calls are always different in this strategy.

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