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A bullish diagonal spread is an advanced option trade and generally not suitable for beginners, but it can have its place within an option portfolio. It is a bullish strategy that benefits from time decay and is best placed when volatility is low, such as the current conditions. The strategy involves buying a long term call and selling a monthly out-of-the-money call against it. The trade is best placed when the trader has a bullish outlook and thinks the stock could get to the short call strike by the first expiration date. A rise in implied volatility will benefit the trade as it has positiv…

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