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Diagonal Call Spread
directional Capped lossAdvanced: a longer-dated, capital-efficient bullish income structure.
⚠ Multi-expiration structure — taught with concrete strikes in the cockpit; the backtester models a single expiration so a win-rate score is not shown.
When to use it
Buy a longer-dated ITM call, sell a shorter-dated OTM call against it, then roll the short call for ongoing income. Like a Poor Man's Covered Call.
Max profit
Varies — driven by the short call premium collected over time.
Max loss
The net debit of the long call.
Payoff at expiry
illustrative shape — not to scale
■ profit zone
■ loss zone
X axis = stock price at expiry →
How it's built
Strikes shown low→high. Sell = collect premium · Buy = pay premium for protection or upside.
This structure has an open-ended or multi-expiration payoff that our backtester
can't model honestly (it would report unrealistic win rates and zero drawdown), so we teach it with concrete
strikes and a real max-loss figure rather than publish unreliable backtest numbers.
Open any ticker's trade cockpit and pick this strategy to see specific strikes, max loss, and max profit.