Diagonal Put Spread

bearish2 legs

Sell near-dated put + buy farther-dated put at a DIFFERENT strike.

This structure spans two expirations, so its outcome can't be drawn as a single at-expiration curve — the short leg expires first and the position transforms. Model it interactively in the Strategy Lab.

How it works

Sell a near-dated put at one strike and buy a longer-dated put at a different strike — directional tilt plus time-decay harvest, put side.

When to use it

Bearish lean with income while you wait, or hedging with subsidized cost.

What can go wrong

Same two-expiration complexity as all diagonals; assignment on the short put is possible if it goes deep in the money.

Price it live in the Strategy Lab Paper trade it free

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Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.