The double in double diagonal refers to trading both calls and puts and the diagonal is to two expiration dates. Think of this as both a diagonal call spread and a diagonal put spread, or you can place this as a calendar as well. The setup follows as buying 1 out of the money call and put with a longer dated expiry and selling 1 out of the money call and strike with a shorted dated expiry.
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Option Contracts
Long Call
Long Put
Short Call
Short Put
Equity - Long
100 shares
Estimated Returns
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