Bullish Options Strategies
In this module, we'll show you how to create specific strategies that profit from up trending markets, including low IV strategies like calendars, diagonals, covered calls, and directional debit spreads.
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Exit Course

Put Diagonal Spread

A put diagonal spread is a multi-leg, risk-defined, bullish strategy with limited profit potential. A put diagonal spread is entered when an investor believes the stock price will be neutral or bullish short-term.
Put Diagonal Spread
Kirk Du Plessis
Apr 19, 2021

You can think of put diagonals as a two-part strategy. Thats because it's basically a cross between a long calendar spread and a short put credit spread. Having features of both basic strategies, this more advanced strategy profits from both a decay in the option prices differential between contract months and the upward directional move in the underlying stock. For the put diagonal spread, you'll first sell a put OTM in the front month and then buy a further OTM put in the back month. This gives your strategy the skew higher because you have an embedded credit spread.

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Custom Naked Put
The custom naked put is a bullish options strategy that combines two strategies, which provides some downside protection if the stock moves lower. Think of the strategy as entering an iron condor without the long put.

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