A calendar with a tilt: buy a three-month call and sell a one-month call at a higher strike. This lesson shows what the pair costs, where it pays best, and why the call you sold isn't naked.
After this lesson you can
- Build a diagonal spread and find its cost
- Explain how it differs from a calendar spread
- Explain why the call you sold isn't naked
- Choose the strikes for a mild up or down view
- Handle the second month and the put version, and avoid the five mistakes
Chapters
- 0:00A calendar with a tilt
- 1:31Two trades, stacked
- 2:32What it pays at the first expiration
- 4:06Diagonal or calendar?
- 5:31Time and volatility
- 6:44What covers the call you sold
- 7:52Choosing the strikes
- 9:24The second month
- 10:42The put version
- 11:59Five mistakes
- 13:02The whole lesson on one screen
Practice in the game: Level 18 · Landlord on a Lease