# Long Call Diagonal

> Does the upper strike sit above the lower strike plus the debit you paid?

| Property | Value |
| --- | --- |
| Market phase | Basing out, or a quiet upward drift, Range-bound, no trend, price oscillating between levels |
| Driver | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way, Path-dependent - the outcome depends on WHEN price is where, not just where it ends up |
| Direction | moderately bullish |
| Max profit | by simulation only - it depends on the residual value of the long call |
| Max loss | approximately the debit |
| Risk defined | Yes |
| Legs | +1 Call @K_low (far expiration, deep ITM); -1 Call @K_high (near expiration, OTM) |
| Approval level | 3 (Defined-risk spreads) |
| Experience | Intermediate |

## Formulas

```text
Break-even: simulation only
Max profit: by simulation only - it depends on the residual value of the long call
Max loss: approximately the debit
```

## Legs

1. +1 Call @K_low (far expiration, deep ITM)
2. -1 Call @K_high (near expiration, OTM)

[Read this strategy on the web](https://www.mindtrajour.com/en/academy/strategies/long-call-diagonal)