Hello
I have read a book How to Turn Every Friday into Payday Using Weekly Options! , and I think the strategy is something similar to a put calendar spread , but I have a question about risk management , he mentioned in the book that the max risk per contract is the difference between the short put strike and the long put strike x100 .
but this trade is opened for a debit so normally the risk would be ( the difference+debit paid )x100
Can some one help me understanding this ? because I need to determine how much contracts Can I deploy without exceeding 3% risk on my capital .
Posted by Icy-Message-1968
1 Comment
Diagonal? Just a vertical where one side of the spread is pushed out in time creating the calendar element of it.