| Position Composition | Risk Profile @ Expiration |
Shown here, long contract is ATM and short is OTM. The reverse is also possible.
 | Long 1 front-month call,
Short 1 back-month call
Both contracts have the same underlying and same strike price, but different expirations.
Time value of long front-month call decays faster than time value of back-month call. |  | Max Loss: Depends on the value of the back-month call when the front-month call expires.
Max Gain: Total credit received for the spread, which is the credit from the short back-month call less the debit for the long front-month call.
E.g., $2.50 - $1.50 = $1.00 |
| Greeks-at-a-Glance | P&L caused by movement in stock price
| It depends on where the stock price is relative to the strike prices, and how much time remains until expiration. | P&L corresponding to changes in implied volatility
| It depends on the long and short strikes chosen, and the proximity of each strike to underlying asset price. | Time Decay
C:RR ratio is explained in "Decision Making" | Negative C:RR unless time value of long leg is too minimal (due to being deep ITM, OTM or near expiry.) | |
| A diagonal spread is the combination of a calendar spread and a vertical spread. As such, the Greeks are indicative of both spreads. The combination creates too many permutations of the Greeks-at-a-Glance grid to display here. |
