Long Put Diagonal Strategy Example

Long Put Diagonal Strategy: Real Trade Example

Real Example (July 2025)

A long put diagonal involves buying a longer-term put at a higher strike and selling a shorter-term put at a lower strike. This is useful for traders with a moderately bearish outlook.

Stock: XYZ Corp
Outlook: Moderately bearish short- to mid-term
Setup: Buy 1 XYZ $105 Put (Oct) @ $6.50; Sell 1 XYZ $95 Put (Aug) @ $2.50
Net Debit: $4.00 ($400 per contract)
Max Loss: $400
Max Gain: Depends on movement and volatility
Ideal Stock Price at Aug Expiration: Near $95

Outcomes

Stock Price at Aug Expiration	Short Put Value	Long Put Value	Net Value	Profit/Loss
$100	$0	$5.50	$5.50	+$150
$95	$0	$7.00	$7.00	+$300
$90	$5.00	$9.00	$4.00	Break-even

Compare With Long Put Calendar Strategy →

Learn Long Put Calendar

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Long Put Diagonal Strategy: Real Trade Example

Real Example (July 2025)

Outcomes

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