Diagonal Spread Strategy: Using Charts to Identify "Income Windows" | Long Verticals & Diagonals

Описание: Long Verticals & Diagonals | Cameron May | 7-24-25
Characteristics and Risks of Standardized Options. https://bit.ly/2v9tH6D

In this video, Schwab Education Senior Manager Cameron May takes a deeper look at diagonal spread trading with a focus on using stock charts to identify "income windows"—those timely moments when a stock nears resistance and may pull back, creating potential opportunities to sell the short-term call leg of a diagonal spread. You'll learn how a trader might recognize these chart patterns and how they might anticipate potential reversals that align with the income element of this strategy. Whether a trader is using support/resistance levels, trendlines, or recent historical price moves, this session ties technical analysis directly to potential options income tactics.

Cameron will demonstrate the strategy step-by-step on the thinkorswim desktop trading platform, including a real-time trade example placed in thinkorswim paperMoney. You'll see how a trader might structure the diagonal spread, how they might select strikes, and how expirations might be chosen, all within the context of example chart signals. If you're looking to combine technical timing with options income generation, this is a practical and focused walkthrough you won't want to miss.

Some stocks are expensive and even their options are costly! Join your education coach to discover an option strategy that allows you to consider options with those expensive underlying stocks with relative low amounts of capital. Learn the risks and how to trade and manage long vertical and diagonal spreads.
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Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction.

Please follow Cameron on X: @CameronMayCS

Scripts are for educational purposes only, are not a recommendation, and are not guaranteed for time or accuracy.


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