Introductory Context
"A masterclass on trading Diagonal Put Spreads (Long Far-Month ITM Put + Short Near-Month OTM Put) for capital-efficient bearish positioning."
Strategy Dossier & Metadata Taxonomy
Strategy: Diagonal Put Spread | Market: NSE Options | Outlook: Moderately Bearish | Capital Efficiency: High
1. The Core Principle in Plain English
A Diagonal Put Spread buys a deep ITM far-dated Put option and repeatedly sells near-term OTM Put options against it, generating cash flow while maintaining structural downside protection.