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
$1,295
Max profit
$656.29
Max loss
$1,295
Breakevens
73,211 / 77,753
Example legs (0.1 DTE front)
- Sell 76,600 put · 2026-08-21
- Buy 77,800 put · 2026-08-22
Entry greeks (per 1 BTC notional): Δ -0.356 · Γ -0.0707 per 1% · vega $14.03/pt · theta $492.39/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.