If you want directional upside while keeping your risk small and defined, the Long Call Diagonal Spread is one of the most efficient strategies in options trading. This structure gives you exposure to a future rally while reducing cost through time decay — perfect for high-income traders in Singapore who want controlled and strategic bullish positioning.
What Is a Long Call Diagonal Spread?
You combine:
1️⃣ Buy a long-term call (farther expiration)
2️⃣ Sell a short-term call (near expiration) at a higher strike
This lowers your cost dramatically while allowing you to stay positioned for a future move upward.
Why Traders Use It
✔️ Much cheaper than buying a call outright
✔️ Takes advantage of time decay
✔️ Works extremely well in stable-to-bullish markets
✔️ Uses ~$1,000 per trade
✔️ Defined risk, controlled exposure
This is the “discounted bullish positioning play” used by professionals who prefer smarter entries instead of chasing breakouts.
Real ~$1,000 Example (AAPL)
AAPL at $200.
A trader might:
1️⃣ Buy the 60-day 195 Call for $7.00
2️⃣ Sell the 30-day 205 Call for $3.00
Net cost = $4.00, scaled to ~$1,000 position sizing.
Your long call holds most of the value. Your short call decays quickly, reducing your cost even more.
How You Profit
1️⃣ AAPL moves upward slowly
Your long call gains value. ✔️ You benefit from bullish movement at a discount.
2️⃣ AAPL stays near the short strike (205)
Your short call expires worthless. ✔️ You keep the premium and can re-sell another call.
3️⃣ AAPL surges too quickly
Your short call caps some upside. ✔️ But your risk is still limited to your small debit.
Diagonal spreads are built for smart, controlled bullish exposure, not reckless bets.
Why Singapore Professionals Use This Strategy
✔️ A safer, cheaper alternative to buying calls ✔️ Works beautifully in trending markets ✔️ Helps reduce cost through time decay ✔️ Fits perfectly with ~$1,000 conservative scaling ✔️ A core tool inside the Best Options Trading Course in Singapore for Millionaires
When you want thoughtful, efficient bullish exposure, Diagonal Spreads are one of the smartest strategies available.
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