As our Core Strategies Series continues on, we dive into a discussion about Diagonal Spreads. Effectively a combination of a Vertical Spread and a Calendar Spread, a Diagonal Spread gives you both a directional bias piece and a time decay piece. This allows you to generate a positive P/L in several ways, as the stock moves and time ticks on. With Kai joining us, we build up a foundation of the important characteristics of this strategy before jumping into the platform to show a real-time example.
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