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Definition, Examples & Resources:Diagonal Call Time Spread'

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What is Diagonal Call Time Spread in Options Trading ?

Diagonal Call Time Spread
A call options trading strategy in which a neutralized position is established by writing high premium near month out of the money calls and buying simultaneously further month at the money call option contracts to take advantage of time decay of near term calls. The months and the strike price of the calls are always different in this strategy.




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