What is a diagonal spread?
Diagonal dissemination is a strategy of stock options, thanks to which the investor decides to buy and sell two different holdings of options within the same stock class at different strike prices and with different expiry date. Therefore, the diagonal range is based on the purchase and sale of two calls or purchasing rights, as well as the purchase and sale of two banquets or sales of rights, the same options at the same time.
The term diagonal spread is unique for stock options. The shares are permission granted by a signed contract, a lawyer or shares of shares of companies issued by the company for the purchase of shares of the company at a specific price stated on the option agreement and in a certain time framework. The stock options are purchased - in some earned - rights to use future dividend shares if the price of the shares rises or risks this advantage if the price falls at the end of the date of the contract.
Diagonal spread is to propose if you pay the risk for option holders through current sales and purchase of variousFree rights at a higher or lower price, also known as strike, and their results will be implemented within the set time limit that differ considerably, but not more than a year. It is as simple as possible, diagonal spread is similar to betting for and against both teams in the same game.
When starting diagonal dissemination, the investor buys and sells calls and sells two different stock options at different strike prices. The strike The price is the price of the share share at a time when the investor signs the option agreement. If the price strike was higher on the date of expiration of the contract, the expiry date and the investor bought the call, then he said that the investor bought the opportunity for a lower price at a lower price and the option would expire with Thinvestor. Unfortunately, diagonal spread can also have the opposite result.
diagonal span includes different options, but the basic stocks are in the same class, shares A or B. class A are ordinary shares available inRunningness and carries 1 vote per share. Class B is normally assigned in 10 votes per share and is usually reserved for owners/founders of the company to keep control of the company.