diagonal spread

noun

In derivatives trading, an options spread position having features of both a calendar spread and a vertical spread. It is established by simultaneously buying and selling equal amount of option contracts of the same type (call or put) but with different strike prices and expiration dates.

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Meanings

noundiagonal spread (plural diagonal spreads)

plural diagonal spreads

  1. businessIn derivatives trading, an options spread position having features of both a calendar spread and a vertical spread. It is established by simultaneously buying and selling equal amount of option contracts of the same type (call or put) but with different strike prices and expiration dates.
Cite this entry
APA

diagonal spread. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/diagonal%20spread

MLA

“diagonal spread.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/diagonal%20spread. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “diagonal spread,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/diagonal%20spread.

Source: diagonal spread on Wiktionary, CC BY-SA 4.0.