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As the name suggests, a Double Diagonal is a type of Diagonal Spread. The strategy is composed of a Diagonal Call Spread and a Diagonal Put Spread.

Diagonal Spreads involve going Short an Out Of The Money Strike Price of the Front Month and Long a different Out Of The Money Strike Price of an expiry month that is further away. For a double diagonal, diagonal Spreads on both Put and Call are initiated.

The Payoff Diagram of a Double Diagonal has some similarity with an Iron Condor. The key difference between Iron Condors and Double Diagonals is that Double Diagonals benefit from an increase in Volatility. As with Iron Condors, however, the price of the Underlying must remain within a range for them to be profitable. Because Double Diagonals

See the Double Diagonal Options Strategy at OptionCreator.com

Double Diagonal
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Trading Double Diagonals in the current Market

Mark Fenton describes the Double Diagonal strategy in this Sheridan Options TV video.

View Sheridan Options Mentoring in Options Market Glossary Directory


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The Ultimate Guide to Double Diagonal Spreads
http://www.optionstradingiq.com/the-ultimate-guide-to-double-diagonal-spreads/

An article by Gavin McMaster explaining how to set up and manage Double Diagonals.

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View Options Trading IQ in Options Market Glossary Directory

Double Diagonal
https://www.optionsplaybook.com/option-strategies/double-diagonal-spread/

An optionsplaybook.com article which provides the basic setup and characteristics of Double Diagonals.

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View The Options Playbook in Options Market Glossary Directory


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Video

Trading Double Diagonals in the current Market

Mark Fenton describes the Double Diagonal strategy in this Sheridan Options TV video.

View Sheridan Options Mentoring in Options Market Glossary Directory