Diagonal Spread is a combination of buying a long-term option (LEAPS) and writing a short-term option with a different strike. Both options are of the same type (call or put), but have different expirations and often different strikes. This strategy benefits from time decay (Theta), underlying movement (Delta) and volatility changes (Vega). Diagonal Spread is often used as an income strategy (repeated statement) and at the same time speculation on the growth/decline of the underlying. It can be constructed as bullish, bearish, or neutral depending on the strike. The advantage is the ability to roll a short option for regular income and manage the position according to market developments. Limited risk is given by the premium paid (debit option) or construction (if credit, less common).