Can you help identify/name this equity options strategy? [closed]

Question

I am thinking of making such a trade:

BUY PUT $590 MARCH
WRITE PUT $600 APRIL

I have done some reading and it looks like a diagonal put spread, but the diagonal put spread uses an out-of-the-money put near-term expiration – “front-month” and a further out-of-the-money put, with expiration one month later – “back-month”.

Answer 1

A diagonal spread simply refers to any 1 to 1 spread in which both the strikes and expiration months are different. The options strategy you describe is indeed a diagonal put spread.

To refer to the fact your trade is flipped relative to the standard definition, you could say:

1. You are doing a "short diagonal spread" (as opposed to long)
2. You are writing a diagonal spread (as opposed to buying)
3. You are doing a credit diagonal spread (i.e. you are collecting the premium and are generally short vega/gamma, as opposed to a debit spread).

Whether your are in/out/at the money would not affect the name of the strategy.