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2.12. Diagonal Put

ProficiencyDirectionVolatilityAsset LegsMax RiskMax RewardStrategy Type
N/A+
AdvancedBearish • Short PutCappedCappedIncome
   • Long Put   


2.12.1. Description

The Diagonal Put is the put equivalent of the Diagonal Call. Instead of buying lower strike calls you buy higher strike puts. Instead of selling higher strike calls with less time to expiration, you sell lower strike puts with less time to expiration. Ultimately the strategy is the exact reverse. Here you derive income from a stock that is falling or rangebound.


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