Spreads · bearish
Put Diagonal Spread Option Calculator
Sell near-term lower strike put, buy longer-dated higher strike put. Bearish diagonal.
How this Put Diagonal Spread calculator works
This free Put Diagonal Spread profit calculator estimates profit and loss across stock prices and dates. Use live quotes and the option chain (via the local data proxy), then review max profit, max loss, breakevens, ROI on risk, probability of profit, and a date × price heatmap or numerical matrix.
- At expiration: intrinsic payoff for each option leg (and stock, if included).
- Before expiration: Black–Scholes theoretical value using each leg’s IV and DTE.
- Multi-expiry: near-term legs settle first; longer-dated legs keep remaining time value (this strategy uses multiple expirations).
Typical legs for a Put Diagonal Spread
Default template legs (edit freely or replace from the option chain):
- Leg 1: buy put @ strike template 100, 60 DTE
- Leg 2: sell put @ strike template 90, 30 DTE
When traders use a Put Diagonal Spread
Market outlook: bearish. Use the calculator to stress-test strikes and premiums before placing an order. Options involve substantial risk of loss and are not suitable for every investor.
Frequently asked questions
What is a Put Diagonal Spread options strategy?
Sell near-term lower strike put, buy longer-dated higher strike put. Bearish diagonal.
How do I calculate profit and loss for a Put Diagonal Spread?
Enter the underlying price, strikes, premiums, and contracts in the Put Diagonal Spread calculator. The tool shows max profit, max loss, breakeven points, and a P/L heatmap from now until expiration using Black–Scholes before expiry and intrinsic value at expiration.
Is the Put Diagonal Spread strategy bearish?
This strategy is generally considered bearish in market outlook. Always confirm risk, margin, and assignment rules with your broker before trading.
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