WebDiagonal Spread on BAC. I opened a diagonal spread on BAC today. I sold the April 21 $28 Calls for a $3,500 credit. And bought the January 2024 $25 Calls for about $23,500. This works like a covered call, and I will keep the $3,500 as profit if BAC stays below $28 by Friday of next week. Is anyone else messing with diagonal spreads? WebJan 21, 2024 · As you can see from above, the 165.00 long call offers (theoretical) unlimited upside while the 165.00/175.00 bull call spread can only achieve a $385.00 profit at best. The maximum gain of $385.00 profit on the bull call spread represents a 62% profit when compared to the $615 cost (excluding commissions).
Bull Call Spread Payoff, Break-Even and R/R
WebIn today’s video I will be sharing with you one of my favorite bullish strategy, the Diagonal Spread! Here are the links mentioned in this video.Thank you fo... WebSep 29, 2024 · Vertical Spread: An options trading strategy with which a trader makes a simultaneous purchase and sale of two options of the same type that have the same expiration dates but different strike ... orchid print tablecloths
Option Spreads Explained The Options & Futures Guide
WebA double diagonal spread is created by buying one “longer-term” straddle and selling one “shorter-term” strangle. In the example above, a two-month (56 days to expiration) 100 Straddle is purchased and a one-month (28 … WebAug 26, 2024 · There are many different ways to set up diagonal spreads. But here are a few concrete examples of possible diagonal spreads. Diagonal spread example 1: 1 short XYZ call with a strike price of 185 that expires in 27 days (front-month). 1 long XYZ call with a strike price of 190 that expires in 55 days (back-month). Diagonal spread example 2: WebA diagonal call spread is seasoned, multi-leg option strategy described as a cross between a long calendar call spread and a short call spread. Important Notice You're leaving Ally Invest orchid pro