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

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”.

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## closed as off topic by Joshua Chance, Alexey Kalmykov, CQM, Bob Jansen, SRKX♦Feb 29 '12 at 8:15

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## 1 Answer

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.

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 Dear user1628, great, thank you very much. [unlike some other users] – user1053408 Feb 29 '12 at 11:57