Diagonal Spread Calculator
A diagonal spread uses different strikes and expirations—often a longer-dated long leg and a shorter-dated short leg—for directional exposure plus theta and vega dynamics.
Spread Configuration
Long Option (Longer-Term)
Short Option (Near-Term)
Enter option details to see payoff diagram
Trade Summary
Diagonal spread P&L depends on IV changes. This shows approximate values at front-month expiration.
Net Debit
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Breakeven
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Commonly asked Diagonal Spread questions
What is a diagonal spread?
Two options, same underlying, different strikes and expirations—often long a back-month leg and short a front-month leg to combine calendar and vertical effects.
Is a PMCC a diagonal?
A poor man’s covered call is a common call diagonal: long LEAPS call, short nearer-dated calls against it.
Why is IV important?
Different expirations can carry different implied vol; diagonals are vega- and skew-sensitive.
How do traders manage?
Roll the short leg, adjust strikes, or close if the thesis breaks—front-month gamma can move quickly.
Diagonal vs calendar?
Pure calendar: same strike, two dates. Diagonal: different strikes and dates.
What is typical risk?
Often defined by net debit and broker-defined risk; payoff is path-dependent—use your broker graph for exact scenarios.
Related Calculators
Daily Cumulative P&L
$33,989.51+$32,609.07
Avg Trade: $60.80
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Best Performing
Morning Breakouts
82% Win Rate
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