What Is double diagonal spread?
A double diagonal spread is made up of a diagonal call spread and a diagonal put spread. To run this strategy, you need to know how to manage the risk of early assignment on your short options.
I.e. Iron condor 但唔係同一個到期日
SC 110, SP 90 due on 7 Jan
LC 120, LP 80 due on 7 Mar
Typically, the stock will be halfway between 90 and 110 when you establish the strategy. If the stock is not in the center at this point, the strategy will have a bullish or bearish bias. You want the stock to remain between 90 and 110, so the options you’ve sold will expire worthless and you will capture the entire premium.
The put and call you bought at 80 and 120 serve to reduce your risk over the course of the strategy in case the stock makes a larger-than-expected move in either direction. (擺一個短期龍門，買一個長期保險)
Once you’ve sold the additional options at strike 90 and 110 and all the options have the same expiration date, you’ll discover you’ve gotten yourself into a good old iron condor.
The goal at this point is still the same as at the outset—you want the stock price to remain between strike 90 and 110. Ultimately, you want all of the options to expire out-of-the-money and worthless so you can pocket the total credit from running all segments of this strategy. (最終目的都係等收錢，LP and LC 只係一個長期保障)
Suggestion:
- Short weekly, Long 1 month
- Short bi-weekly, Long 2 months
- Short monthly, Long 3 months
沒有留言:
發佈留言