Diagonal put spread
BearishLimited profitLimited loss
Long back-month put, short near OTM put: bearish diagonal decay play.
Payoff at front expiry — live BTC example
Net debit
$476.47
Max profit
$620.75
Max loss
$476.47
Breakeven
65,707
Example legs (0.7 DTE front)
- Sell 64,800 put · 2026-07-23
- Buy 65,800 put · 2026-07-24
Entry greeks (per 1 BTC notional): Δ -0.381 · Γ 0.0591 per 1% · vega $13.25/pt · theta $-68.60/day
How it works
Mirror diagonal: long dated put financed by short near-dated puts.
When to use it
Bearish drift with income while waiting.
Risks & management
Same crush/gap sensitivities, mirrored.
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.