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
$583.91
Max profit
$693.62
Max loss
$583.91
Breakeven
66,061
Example legs (0.7 DTE front)
- Sell 67,000 call · 2026-07-23
- Buy 65,800 call · 2026-07-24
Entry greeks (per 1 BTC notional): Δ 0.442 · Γ 0.0537 per 1% · vega $13.31/pt · theta $-75.69/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.