Diagonal call spread
BullishLimited profitLimited loss
Long back-month call, short near OTM call: covered-call economics on options.
Payoff at front expiry — live BTC example
Net debit
$765
Max profit
$666.71
Max loss
$765
Breakeven
77,189
Example legs (0.3 DTE front)
- Sell 78,200 call · 2026-08-23
- Buy 77,000 call · 2026-08-24
Entry greeks (per 1 BTC notional): Δ 0.464 · Γ 0.0494 per 1% · vega $16.19/pt · theta $-179.51/day
How it works
The long back-month call substitutes for spot while the short front call generates income — the "poor man's covered call".
When to use it
Bullish drift thesis where you want covered-call income without full spot capital.
Risks & management
A fast rally through the short strike caps the front cycle; a dump devalues the long leg. IV crush on the back month is the hidden risk.
Related structures
Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.