diagonal spread

Uses options with different expiration dates and different strike prices; for example, a trader might purchase a 26 December German Mark put and sell a 28 September German Mark put when the futures price is $.2600/DM. The CENTER ONLINE Futures Glossary
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An options strategy requiring a long and a short position in the same class of option at different strike prices and different expiration dates. For example, buying an XYZ April 50 call and selling an XYZ July 55 call. Bloomberg Financial Dictionary
See: calendar spread; vertical spread. Bloomberg Financial Dictionary
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An option spread where one option is purchased and a different option is sold. The sold option has a different strike price and expiry date from the purchased. The spread will be constructed with either all calls or all puts on the same underlying asset. Dresdner Kleinwort Wasserstein financial glossary

Financial and business terms. 2012.

Look at other dictionaries:

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