# skill-diagonal-spread — checklist

Review before education output. This list does not approve a trade.

## When to use
- [ ] The structure is not a vertical (different expiries) and not a calendar (different strikes).
- [ ] A call diagonal is the usual bullish illustration: longer-dated long call, nearer short call at a higher strike.

## Setup
- [ ] Long leg: farther expiry. Short leg: nearer expiry, different strike.
- [ ] State both strikes, both expiries, and the net debit or credit.
- [ ] The short leg is the one that can be assigned or rolled first.

## Rules of thumb
- [ ] The strike gap and the time gap are both intentional. Name each.
- [ ] Assignment or a roll applies to the short leg only. The long leg is the remaining exposure.
- [ ] Upside past the short strike can cap the near-term gain even while the long leg still has time.

## Pitfalls
- [ ] Expiries so close that the position behaves like a vertical.
- [ ] Short strike at or below the long strike, which can invert the payoff.
- [ ] Ignoring the debit if the long leg decays while the short premium was small.

## Disclaimer
- [ ] Disclosure is present: risks, the options disclosure document, and omitted costs.
- [ ] The answer is education. It is not a signal, a recommendation, or an order.