A calendar spread's cousin with different strikes instead of matching ones. Buy a further-dated call at a lower strike, sell a near-dated call at a higher strike — built to profit if the stock stays inside a defined corridor.
Neutral Diagonal Spread is a sideways / range-bound options trading strategy (2 legs) engineered for limited risk profiles in mixed iv market environments.
Complex calculation based on Far Term option value at short expiration
Net Debit Paid
Dynamic Range
| Action | Contract Type | Strike Selection | Quantity |
|---|---|---|---|
| BUY | CALL | Lower Strike (Far Term) | 1x |
| SELL | CALL | Higher Strike (Near Term) | 1x |
The bread-and-butter income trade for a range-bound market. Stack a Bear Call Spread on top of a Bull Put Spread, collect the combined credit, and let the stock chop sideways while theta pays you.
🔁 Sideways / Range-BoundThe condor's tighter, higher-conviction cousin. Sell an ATM call and ATM put right at the money, buy OTM wings for protection. Bigger credit, but the stock needs to stay much closer to your center strike.
🔁 Sideways / Range-BoundAs pure as premium-selling gets — sell an ATM call and an ATM put, same strike, same expiry. Maximum premium collected, but maximum exposure too if the stock decides to move hard in either direction.
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