Chapter 6Diagonal Spreads
The diagonal spread is an income generating strategy that requires the right tools to trade it properly. In order to emphasize how powerful it is when in the right hands and how critical it is to analyze it correctly, I teach you how to do it wrong before we get to do it right! The reason I do this is because the diagonal spread is one of the most mistaught strategies out there. Without the right tools, people will do it wrong and teach it wrong. With the right tools, it will become one of your favorite strategies.
The diagonal is not often spoken about as a volatility strategy but more of an income strategy. However, in this chapter I demonstrate to you that it is, in fact, both.
The Basic Covered Call
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