Diagonal Call Spread
You expect a slow, gradual rise. You hold a "far" call for the upside and repeatedly sell "near" ones to offset the holding cost — like renting the position out while you calmly wait for the trend.
How the Diagonal Call Spread works
The long longer-dated call gives directional upside, while repeatedly selling the near-term call collects premium and lowers cost — like a Covered Call, but with an option instead of the asset.
It gains from a moderate rally and theta decay of the sold call.
Placing strikes at GEX levels
Sell the near-term call at the Call Wall (resistance); the long longer-dated call sits lower on support. The ideal regime is positive GEX with a moderate rally.
The Call Wall and Gamma Flip are computed live in the GEX Terminal — build the diagonal in the Position Builder.
When to open, the Greeks and managing the position
Built for a moderate, gradual rise over time. Selling near-dated calls at a higher strike lowers the overall cost of holding the far long call — a "premium harvest" for income. Max loss is strictly capped at the initial net debit.
Greeks: it benefits from the near sold option's faster decay (theta) while keeping the far call to ride the trend. Management: after the near call expires, sell the next one, continuing to fund the long leg.
FAQ
The long longer-dated call stands in for the asset, and selling the near call earns income — like a covered call, but cheaper.
Largely capped at the debit paid.
Build the Diagonal Call Spread on live BTC and ETH quotes in the Position Builder.
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Information is for educational purposes only and does not constitute investment advice. Options trading carries high risk.