{"id":49476,"date":"2019-12-27T10:08:03","date_gmt":"2019-12-27T15:08:03","guid":{"rendered":"https:\/\/www.smbtraining.com\/blog\/?p=49476"},"modified":"2023-06-08T15:16:33","modified_gmt":"2023-06-08T19:16:33","slug":"weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play","title":{"rendered":"Weekly Options: Double Diagonal Strategy for Risk-Free Earnings"},"content":{"rendered":"

Weekly options can be used to create a surprising amount of cash flow if you employ the double diagonal strategy leading up to earnings. In this video we show you an example of using weekly options in CMG to create a potentially risk free trade as CMG heads into its quarterly earnings release.
\nView Video Transcript<\/strong><\/span>

\n
\n
\n
\n
\n
\n
\n
\n
\n
in this video we’re going to show you a<\/div>\n<\/div>\n<\/div>\n
\n
\n
very interesting strategy for pulling<\/div>\n<\/div>\n<\/div>\n
\n
\n
the risk out of a trade on stocks<\/div>\n<\/div>\n<\/div>\n
\n
\n
leading up to earnings so that by the<\/div>\n<\/div>\n<\/div>\n
\n
\n
time the earnings date arrives you’ll be<\/div>\n<\/div>\n<\/div>\n
\n
\n
faced with an attractive situation that<\/div>\n<\/div>\n<\/div>\n
\n
\n
you might have not thought possible<\/div>\n<\/div>\n<\/div>\n
\n
\n
I’m the head options trader on our<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading desk here at SMB capital in<\/div>\n<\/div>\n<\/div>\n
\n
\n
Manhattan and the traders on our desk<\/div>\n<\/div>\n<\/div>\n
\n
\n
are constantly seeking to develop<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading ideas where risk is minimized<\/div>\n<\/div>\n<\/div>\n
\n
\n
and reward is maximized so if you’re<\/div>\n<\/div>\n<\/div>\n
\n
\n
interested in a way that you can set<\/div>\n<\/div>\n<\/div>\n
\n
\n
yourself up with minimal risk on a trade<\/div>\n<\/div>\n<\/div>\n
\n
\n
while putting yourself into a position<\/div>\n<\/div>\n<\/div>\n
\n
\n
for really solid gains you should stick<\/div>\n<\/div>\n<\/div>\n
\n
\n
around because I think you’re going to<\/div>\n<\/div>\n<\/div>\n
\n
\n
find this intriguing<\/div>\n<\/div>\n<\/div>\n
\n
\n
[Music]<\/div>\n<\/div>\n<\/div>\n
\n
\n
hi I’m Seth Freiburg and I’m the head<\/div>\n<\/div>\n<\/div>\n
\n
\n
trader of SMB capitals options trading<\/div>\n<\/div>\n<\/div>\n
\n
\n
desk SMB capital is a proprietary<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading firm located in midtown<\/div>\n<\/div>\n<\/div>\n
\n
\n
Manhattan and we provide capital for<\/div>\n<\/div>\n<\/div>\n
\n
\n
options and equity traders from all over<\/div>\n<\/div>\n<\/div>\n
\n
\n
the world trading both remotely and in<\/div>\n<\/div>\n<\/div>\n
\n
\n
our offices here in New York City now<\/div>\n<\/div>\n<\/div>\n
\n
\n
I’d like to suggest that you click on<\/div>\n<\/div>\n<\/div>\n
\n
\n
our subscribe button right now so that<\/div>\n<\/div>\n<\/div>\n
\n
\n
you don’t miss any of our free trading<\/div>\n<\/div>\n<\/div>\n
\n
\n
videos that we produce for traders and<\/div>\n<\/div>\n<\/div>\n
\n
\n
investors all over the world they’re<\/div>\n<\/div>\n<\/div>\n
\n
\n
really very valuable<\/div>\n<\/div>\n<\/div>\n
\n
\n
okay so Chipotle Mexican Grill with the<\/div>\n<\/div>\n<\/div>\n
\n
\n
ticker symbol CMG was trading around<\/div>\n<\/div>\n<\/div>\n
\n
\n
8:35 and as you can see since late July<\/div>\n<\/div>\n<\/div>\n
\n
\n
the stock price was channeling between<\/div>\n<\/div>\n<\/div>\n
\n
\n
780 and 850 Chipotle was scheduled to<\/div>\n<\/div>\n<\/div>\n
\n
\n
release its third quarter earnings<\/div>\n<\/div>\n<\/div>\n
\n
\n
report on October 22nd and most stocks<\/div>\n<\/div>\n<\/div>\n
\n
\n
will have an unusually large reaction to<\/div>\n<\/div>\n<\/div>\n
\n
\n
their earnings reports as the earnings<\/div>\n<\/div>\n<\/div>\n
\n
\n
report will often be a catalyst that<\/div>\n<\/div>\n<\/div>\n
\n
\n
will cause the stock’s price to break<\/div>\n<\/div>\n<\/div>\n
\n
\n
out of its range that it was in prior to<\/div>\n<\/div>\n<\/div>\n
\n
\n
the earnings report being released now<\/div>\n<\/div>\n<\/div>\n
\n
\n
before we delve into this option<\/div>\n<\/div>\n<\/div>\n
\n
\n
strategy it’s important that everyone<\/div>\n<\/div>\n<\/div>\n
\n
\n
have a basic understanding of how<\/div>\n<\/div>\n<\/div>\n
\n
\n
options work most of you probably know<\/div>\n<\/div>\n<\/div>\n
\n
\n
something about options but just four<\/div>\n<\/div>\n<\/div>\n
\n
\n
really super quick review what’s known<\/div>\n<\/div>\n<\/div>\n
\n
\n
as a call option on a stock entitles the<\/div>\n<\/div>\n<\/div>\n
\n
\n
buyer of that option to purchase 100<\/div>\n<\/div>\n<\/div>\n
\n
\n
shares of that stock at a certain price<\/div>\n<\/div>\n<\/div>\n
\n
\n
called the strike price of that option<\/div>\n<\/div>\n<\/div>\n
\n
\n
regardless of what price the stock is<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading what’s called a put option on<\/div>\n<\/div>\n<\/div>\n
\n
\n
the other hand entitles the buyer of<\/div>\n<\/div>\n<\/div>\n
\n
\n
that put to sell 100 shares of a stock<\/div>\n<\/div>\n<\/div>\n
\n
\n
he owns at the strike price of that put<\/div>\n<\/div>\n<\/div>\n
\n
\n
again regardless of what price the stock<\/div>\n<\/div>\n<\/div>\n
\n
\n
is trading the buyer of the option pays<\/div>\n<\/div>\n<\/div>\n
\n
\n
what’s called a premium to the seller of<\/div>\n<\/div>\n<\/div>\n
\n
\n
the option because the seller of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
option is taking the risk that the stock<\/div>\n<\/div>\n<\/div>\n
\n
\n
will go past the strike price of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
option in which case the buyer can<\/div>\n<\/div>\n<\/div>\n
\n
\n
exercise his option but if the stock<\/div>\n<\/div>\n<\/div>\n
\n
\n
when the expiration day of the option is<\/div>\n<\/div>\n<\/div>\n
\n
\n
not beyond the strike price of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
option then the seller just pockets the<\/div>\n<\/div>\n<\/div>\n
\n
\n
premium that he was given by the buyer<\/div>\n<\/div>\n<\/div>\n
\n
\n
he walks away completely free of any<\/div>\n<\/div>\n<\/div>\n
\n
\n
obligation so for example let’s say you<\/div>\n<\/div>\n<\/div>\n
\n
\n
think that CMG will go up a lot after<\/div>\n<\/div>\n<\/div>\n
\n
\n
earnings well in that case you might buy<\/div>\n<\/div>\n<\/div>\n
\n
\n
the CMG 8:55 call that you can see here<\/div>\n<\/div>\n<\/div>\n
\n
\n
which costs $27 and 51 cents but<\/div>\n<\/div>\n<\/div>\n
\n
\n
each option represents the right to buy<\/div>\n<\/div>\n<\/div>\n
\n
\n
100 shares of CMG and so you multiply<\/div>\n<\/div>\n<\/div>\n
\n
\n
that by 100 to get the cost of that call<\/div>\n<\/div>\n<\/div>\n
\n
\n
which is actually a cash outlay of two<\/div>\n<\/div>\n<\/div>\n
\n
\n
thousand seven hundred fifty one dollars<\/div>\n<\/div>\n<\/div>\n
\n
\n
twenty seven dollars and 51 cents times<\/div>\n<\/div>\n<\/div>\n
\n
\n
100 or suppose you own CMG stock and you<\/div>\n<\/div>\n<\/div>\n
\n
\n
think that it may go down after earnings<\/div>\n<\/div>\n<\/div>\n
\n
\n
well in that case you might decide to<\/div>\n<\/div>\n<\/div>\n
\n
\n
buy that 775 CMG put for $14 and 52<\/div>\n<\/div>\n<\/div>\n
\n
\n
cents which again is multiplied by 100<\/div>\n<\/div>\n<\/div>\n
\n
\n
because that represents the right to<\/div>\n<\/div>\n<\/div>\n
\n
\n
sell 100 shares of CMG at any time<\/div>\n<\/div>\n<\/div>\n
\n
\n
between now and October 25th so that<\/div>\n<\/div>\n<\/div>\n
\n
\n
would put that put would cost 100 times<\/div>\n<\/div>\n<\/div>\n
\n
\n
that or one thousand four hundred<\/div>\n<\/div>\n<\/div>\n
\n
\n
fifty-two dollars now if CMG closes<\/div>\n<\/div>\n<\/div>\n
\n
\n
above 775 then the put will actually<\/div>\n<\/div>\n<\/div>\n
\n
\n
expire worthless because the right to<\/div>\n<\/div>\n<\/div>\n
\n
\n
sell CMG shares at 775 when the stock is<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading above that is obviously a<\/div>\n<\/div>\n<\/div>\n
\n
\n
worthless right the same thing goes for<\/div>\n<\/div>\n<\/div>\n
\n
\n
the case for CMG closes below 855 on<\/div>\n<\/div>\n<\/div>\n
\n
\n
expiration day October 25th in that case<\/div>\n<\/div>\n<\/div>\n
\n
\n
the call option will expire worthless<\/div>\n<\/div>\n<\/div>\n
\n
\n
because no one will exercise their right<\/div>\n<\/div>\n<\/div>\n
\n
\n
to buy a stock at a higher price than<\/div>\n<\/div>\n<\/div>\n
\n
\n
it’s trading so those are the basics of<\/div>\n<\/div>\n<\/div>\n
\n
\n
how stock options work using CMG as an<\/div>\n<\/div>\n<\/div>\n
\n
\n
example now with that in mind suppose<\/div>\n<\/div>\n<\/div>\n
\n
\n
that on September 20th we go in and buy<\/div>\n<\/div>\n<\/div>\n
\n
\n
both the 855 call and the 775 put on CMG<\/div>\n<\/div>\n<\/div>\n
\n
\n
as you see well that combination buying<\/div>\n<\/div>\n<\/div>\n
\n
\n
both a call and a put above and below<\/div>\n<\/div>\n<\/div>\n
\n
\n
the market price respectively is what is<\/div>\n<\/div>\n<\/div>\n
\n
\n
known as a strangle two options<\/div>\n<\/div>\n<\/div>\n
\n
\n
professionals well the total cost of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
strangle as you can see from the<\/div>\n<\/div>\n<\/div>\n
\n
\n
calculation is four thousand two hundred<\/div>\n<\/div>\n<\/div>\n
\n
\n
and three dollars now here’s where it<\/div>\n<\/div>\n<\/div>\n
\n
\n
gets interesting<\/div>\n<\/div>\n<\/div>\n
\n
\n
remember CMG was channeling between 780<\/div>\n<\/div>\n<\/div>\n
\n
\n
and 850 for the last six weeks so it<\/div>\n<\/div>\n<\/div>\n
\n
\n
wouldn’t be unreasonable to expect that<\/div>\n<\/div>\n<\/div>\n
\n
\n
there’s a decent chance that that<\/div>\n<\/div>\n<\/div>\n
\n
\n
channeling would continue until the next<\/div>\n<\/div>\n<\/div>\n
\n
\n
major catalyst which would probably be<\/div>\n<\/div>\n<\/div>\n
\n
\n
CMG’s next earnings released so what<\/div>\n<\/div>\n<\/div>\n
\n
\n
some options traders will do at this<\/div>\n<\/div>\n<\/div>\n
\n
\n
point is to go about a week out and at<\/div>\n<\/div>\n<\/div>\n
\n
\n
the same time they buy the long call in<\/div>\n<\/div>\n<\/div>\n
\n
\n
the long put in other words at the same<\/div>\n<\/div>\n<\/div>\n
\n
\n
time they buy the long strangle they’ll<\/div>\n<\/div>\n<\/div>\n
\n
\n
go in and sell a short strangle<\/div>\n<\/div>\n<\/div>\n
\n
\n
at 780 and 850 the outer range of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
channel on the upside and the downside<\/div>\n<\/div>\n<\/div>\n
\n
\n
of the stock’s price now when you do<\/div>\n<\/div>\n<\/div>\n
\n
\n
this selling a tighter to the market<\/div>\n<\/div>\n<\/div>\n
\n
\n
strangle in the front week and buy a<\/div>\n<\/div>\n<\/div>\n
\n
\n
farther from the market strangle in the<\/div>\n<\/div>\n<\/div>\n
\n
\n
back month that entire combination is<\/div>\n<\/div>\n<\/div>\n
\n
\n
what is known as a double diagonal so<\/div>\n<\/div>\n<\/div>\n
\n
\n
that is how we enter the trade on<\/div>\n<\/div>\n<\/div>\n
\n
\n
September 20th which is 33 days before<\/div>\n<\/div>\n<\/div>\n
\n
\n
earnings are going to be released and 36<\/div>\n<\/div>\n<\/div>\n
\n
\n
days before the long straddle expires<\/div>\n<\/div>\n<\/div>\n
\n
\n
now let’s break down the economics of<\/div>\n<\/div>\n<\/div>\n
\n
\n
what has happened as we entered the<\/div>\n<\/div>\n<\/div>\n
\n
\n
double diagonal as we mentioned before<\/div>\n<\/div>\n<\/div>\n
\n
\n
the long strangle expiring on October<\/div>\n<\/div>\n<\/div>\n
\n
\n
25th cost us forty two hundred and three<\/div>\n<\/div>\n<\/div>\n
\n
\n
dollars but we’re simultaneously selling<\/div>\n<\/div>\n<\/div>\n
\n
\n
against that long strangle the 850 calls<\/div>\n<\/div>\n<\/div>\n
\n
\n
for four hundred seventy one dollars and<\/div>\n<\/div>\n<\/div>\n
\n
\n
the 780 put for eighty two dollars so<\/div>\n<\/div>\n<\/div>\n
\n
\n
that nets down the cost of the original<\/div>\n<\/div>\n<\/div>\n
\n
\n
strangle that we bought to expire after<\/div>\n<\/div>\n<\/div>\n
\n
\n
earnings to three thousand six hundred<\/div>\n<\/div>\n<\/div>\n
\n
\n
fifty dollars okay so that’s our first<\/div>\n<\/div>\n<\/div>\n
\n
\n
trade in what’s going to be a campaign<\/div>\n<\/div>\n<\/div>\n
\n
\n
as you’ll see shortly before we get into<\/div>\n<\/div>\n<\/div>\n
\n
\n
how this trade actually would have<\/div>\n<\/div>\n<\/div>\n
\n
\n
turned out I wanted to mention that<\/div>\n<\/div>\n<\/div>\n
\n
\n
we’re currently running a to our free<\/div>\n<\/div>\n<\/div>\n
\n
\n
intensive workshop at the moment where<\/div>\n<\/div>\n<\/div>\n
\n
\n
we’ll be teaching you three real-world<\/div>\n<\/div>\n<\/div>\n
\n
\n
option strategies that professional<\/div>\n<\/div>\n<\/div>\n
\n
\n
options traders use including a really<\/div>\n<\/div>\n<\/div>\n
\n
\n
simple but incredibly effective strategy<\/div>\n<\/div>\n<\/div>\n
\n
\n
that some of the greatest investors in<\/div>\n<\/div>\n<\/div>\n
\n
\n
the world like Warren Buffett used all<\/div>\n<\/div>\n<\/div>\n
\n
\n
of the time plus an options trading<\/div>\n<\/div>\n<\/div>\n
\n
\n
strategy that has a statistical 80<\/div>\n<\/div>\n<\/div>\n
\n
\n
percent probability of profit month in<\/div>\n<\/div>\n<\/div>\n
\n
\n
and month out plus an option strategy<\/div>\n<\/div>\n<\/div>\n
\n
\n
that you can employ with the stock that<\/div>\n<\/div>\n<\/div>\n
\n
\n
you like where you’ll make your target<\/div>\n<\/div>\n<\/div>\n
\n
\n
profit whether the stock goes up goes<\/div>\n<\/div>\n<\/div>\n
\n
\n
nowhere or believe it or not even if it<\/div>\n<\/div>\n<\/div>\n
\n
\n
goes down a small percentage you’ll make<\/div>\n<\/div>\n<\/div>\n
\n
\n
your target profits so if those<\/div>\n<\/div>\n<\/div>\n
\n
\n
strategies would be of interest to you<\/div>\n<\/div>\n<\/div>\n
\n
\n
then you should check out the free<\/div>\n<\/div>\n<\/div>\n
\n
\n
options class that we’re currently<\/div>\n<\/div>\n<\/div>\n
\n
\n
running now just go ahead and click the<\/div>\n<\/div>\n<\/div>\n
\n
\n
link that should be appearing now at the<\/div>\n<\/div>\n<\/div>\n
\n
\n
top right corner of your screen that<\/div>\n<\/div>\n<\/div>\n
\n
\n
will open the free registration page in<\/div>\n<\/div>\n<\/div>\n
\n
\n
a new window<\/div>\n<\/div>\n<\/div>\n
\n
\n
so don’t worry you won’t lose this video<\/div>\n<\/div>\n<\/div>\n
\n
\n
or you can just head on over to options<\/div>\n<\/div>\n<\/div>\n
\n
\n
class com to register for this free<\/div>\n<\/div>\n<\/div>\n
\n
\n
intensive workshop it’s a rare<\/div>\n<\/div>\n<\/div>\n
\n
\n
opportunity for retail traders and<\/div>\n<\/div>\n<\/div>\n
\n
\n
investors to learn directly from all<\/div>\n<\/div>\n<\/div>\n
\n
\n
three traders but that’s exactly what<\/div>\n<\/div>\n<\/div>\n
\n
\n
you’ll be getting through this free<\/div>\n<\/div>\n<\/div>\n
\n
\n
online workshop so click the link to<\/div>\n<\/div>\n<\/div>\n
\n
\n
sign up down don’t miss it<\/div>\n<\/div>\n<\/div>\n
\n
\n
now on our CMG trade we move forward<\/div>\n<\/div>\n<\/div>\n
\n
\n
about a week and as you can see the CMG<\/div>\n<\/div>\n<\/div>\n
\n
\n
has sold off a bit down to 817 and the<\/div>\n<\/div>\n<\/div>\n
\n
\n
options that we sold Leslie will be<\/div>\n<\/div>\n<\/div>\n
\n
\n
expiring in about five hours so to close<\/div>\n<\/div>\n<\/div>\n
\n
\n
those short options and end that part of<\/div>\n<\/div>\n<\/div>\n
\n
\n
the trade we can buy those back very<\/div>\n<\/div>\n<\/div>\n
\n
\n
cheaply because they’re so far from the<\/div>\n<\/div>\n<\/div>\n
\n
\n
money with only five hours to go that<\/div>\n<\/div>\n<\/div>\n
\n
\n
the whole market knows it’s very<\/div>\n<\/div>\n<\/div>\n
\n
\n
unlikely the price will reach 850 in<\/div>\n<\/div>\n<\/div>\n
\n
\n
five hours nor drop to 780 in a few<\/div>\n<\/div>\n<\/div>\n
\n
\n
hours so as a result as you can see we<\/div>\n<\/div>\n<\/div>\n
\n
\n
by the expiring 850 calls for just seven<\/div>\n<\/div>\n<\/div>\n
\n
\n
cents and we buy the expiring 780 calls<\/div>\n<\/div>\n<\/div>\n
\n
\n
for just 35 cents so the total cost to<\/div>\n<\/div>\n<\/div>\n
\n
\n
buy those two short expiring options<\/div>\n<\/div>\n<\/div>\n
\n
\n
back was a total of 42 dollars and then<\/div>\n<\/div>\n<\/div>\n
\n
\n
at the same time we go ahead and sell<\/div>\n<\/div>\n<\/div>\n
\n
\n
the same strike prices 850 on the calls<\/div>\n<\/div>\n<\/div>\n
\n
\n
and 780 on the puts for the next weeks<\/div>\n<\/div>\n<\/div>\n
\n
\n
expiration collecting one dollar and 48<\/div>\n<\/div>\n<\/div>\n
\n
\n
cents and two dollars and 63 cents for<\/div>\n<\/div>\n<\/div>\n
\n
\n
the calls and puts respectively now<\/div>\n<\/div>\n<\/div>\n
\n
\n
let’s take a look at where we stand on<\/div>\n<\/div>\n<\/div>\n
\n
\n
cash flow at this point okay well we<\/div>\n<\/div>\n<\/div>\n
\n
\n
have our original long strangle cost of<\/div>\n<\/div>\n<\/div>\n
\n
\n
40 203 and we subtract from that the<\/div>\n<\/div>\n<\/div>\n
\n
\n
cash flow we get we got from the first<\/div>\n<\/div>\n<\/div>\n
\n
\n
week short strangle at 8:50 and 780 and<\/div>\n<\/div>\n<\/div>\n
\n
\n
you remember we brought in 553 for those<\/div>\n<\/div>\n<\/div>\n
\n
\n
now to close those a week later we just<\/div>\n<\/div>\n<\/div>\n
\n
\n
showed you that we’re paying only $42<\/div>\n<\/div>\n<\/div>\n
\n
\n
but remember now we’re also selling<\/div>\n<\/div>\n<\/div>\n
\n
\n
those same strikes into the next week so<\/div>\n<\/div>\n<\/div>\n
\n
\n
we receive an additional 148 dollars for<\/div>\n<\/div>\n<\/div>\n
\n
\n
the new short call and another 263 for<\/div>\n<\/div>\n<\/div>\n
\n
\n
the new short put so the total cost of<\/div>\n<\/div>\n<\/div>\n
\n
\n
the trade is now going down to three<\/div>\n<\/div>\n<\/div>\n
\n
\n
thousand two hundred eighty one dollars<\/div>\n<\/div>\n<\/div>\n
\n
\n
almost a thousand dollars below the<\/div>\n<\/div>\n<\/div>\n
\n
\n
original cost now let’s move forward<\/div>\n<\/div>\n<\/div>\n
\n
\n
another week now at this point the CMG<\/div>\n<\/div>\n<\/div>\n
\n
\n
has been relatively stable trading up<\/div>\n<\/div>\n<\/div>\n
\n
\n
slightly to a twenty but again the<\/div>\n<\/div>\n<\/div>\n
\n
\n
options we sold the week before and now<\/div>\n<\/div>\n<\/div>\n
\n
\n
going to expire in a few hours and so<\/div>\n<\/div>\n<\/div>\n
\n
\n
they can be bought back really cheaply<\/div>\n<\/div>\n<\/div>\n
\n
\n
because they just aren’t worth much<\/div>\n<\/div>\n<\/div>\n
\n
\n
the chances of CMG getting to 850 or<\/div>\n<\/div>\n<\/div>\n
\n
\n
7080 is remote again over the next five<\/div>\n<\/div>\n<\/div>\n
\n
\n
hours so<\/div>\n<\/div>\n<\/div>\n
\n
\n
we can again by those cheaply 12 cents<\/div>\n<\/div>\n<\/div>\n
\n
\n
for the calls and 20 cents for the puts<\/div>\n<\/div>\n<\/div>\n
\n
\n
to close those short options and at the<\/div>\n<\/div>\n<\/div>\n
\n
\n
same time open up new short options<\/div>\n<\/div>\n<\/div>\n
\n
\n
again at the same strikes as we did the<\/div>\n<\/div>\n<\/div>\n
\n
\n
previous two weeks 850 and 780 selling<\/div>\n<\/div>\n<\/div>\n
\n
\n
that calls for 228 this time and selling<\/div>\n<\/div>\n<\/div>\n
\n
\n
the puts for 281 so as you can see from<\/div>\n<\/div>\n<\/div>\n
\n
\n
the calculations if we look at the costs<\/div>\n<\/div>\n<\/div>\n
\n
\n
now you’ll see that if you add in all<\/div>\n<\/div>\n<\/div>\n
\n
\n
the credits we’ve gotten so far from the<\/div>\n<\/div>\n<\/div>\n
\n
\n
short options and net that out of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
from the cost of buying back those short<\/div>\n<\/div>\n<\/div>\n
\n
\n
options right before they expire you’ll<\/div>\n<\/div>\n<\/div>\n
\n
\n
see that our cash flow is now down to an<\/div>\n<\/div>\n<\/div>\n
\n
\n
outlay of a little over $2,800 so we<\/div>\n<\/div>\n<\/div>\n
\n
\n
move yet another week where CMG has<\/div>\n<\/div>\n<\/div>\n
\n
\n
moved up to 841 now and we do the same<\/div>\n<\/div>\n<\/div>\n
\n
\n
thing rolling the short calls and puts<\/div>\n<\/div>\n<\/div>\n
\n
\n
into the next week this time paying 64<\/div>\n<\/div>\n<\/div>\n
\n
\n
cents to close the expiring options and<\/div>\n<\/div>\n<\/div>\n
\n
\n
rolling them into the next week for<\/div>\n<\/div>\n<\/div>\n
\n
\n
incoming cash flow of 862 cents so doing<\/div>\n<\/div>\n<\/div>\n
\n
\n
the math now adding up all of the cash<\/div>\n<\/div>\n<\/div>\n
\n
\n
we received for all the short options we<\/div>\n<\/div>\n<\/div>\n
\n
\n
sold and netting those out with the<\/div>\n<\/div>\n<\/div>\n
\n
\n
small amounts that we’ve had to pay to<\/div>\n<\/div>\n<\/div>\n
\n
\n
buy those short positions back we’ve<\/div>\n<\/div>\n<\/div>\n
\n
\n
gotten our cash outlay on the trade now<\/div>\n<\/div>\n<\/div>\n
\n
\n
down to just a little bit over 2000<\/div>\n<\/div>\n<\/div>\n
\n
\n
dollars now that’s half of our original<\/div>\n<\/div>\n<\/div>\n
\n
\n
cash outlay okay so now this is where it<\/div>\n<\/div>\n<\/div>\n
\n
\n
gets really really interesting so<\/div>\n<\/div>\n<\/div>\n
\n
\n
finally we get to the week before the<\/div>\n<\/div>\n<\/div>\n
\n
\n
long straddle that we bought a month ago<\/div>\n<\/div>\n<\/div>\n
\n
\n
so the whole trade is really leading up<\/div>\n<\/div>\n<\/div>\n
\n
\n
to what’s going to happen this week<\/div>\n<\/div>\n<\/div>\n
\n
\n
because this week is also the week right<\/div>\n<\/div>\n<\/div>\n
\n
\n
before earnings takes place in fact<\/div>\n<\/div>\n<\/div>\n
\n
\n
earnings will be released in four days<\/div>\n<\/div>\n<\/div>\n
\n
\n
while these options will actually expire<\/div>\n<\/div>\n<\/div>\n
\n
\n
after earnings in seven days so the<\/div>\n<\/div>\n<\/div>\n
\n
\n
implications of that are significant<\/div>\n<\/div>\n<\/div>\n
\n
\n
because now we are for the first time in<\/div>\n<\/div>\n<\/div>\n
\n
\n
this trade going to be selling options<\/div>\n<\/div>\n<\/div>\n
\n
\n
that are going to expire after earnings<\/div>\n<\/div>\n<\/div>\n
\n
\n
now what this means is that the options<\/div>\n<\/div>\n<\/div>\n
\n
\n
market is going to really pump up the<\/div>\n<\/div>\n<\/div>\n
\n
\n
price of those options because look CMG<\/div>\n<\/div>\n<\/div>\n
\n
\n
is now trading at 8:45 and earnings are<\/div>\n<\/div>\n<\/div>\n
\n
\n
about to be announced so that’s huge<\/div>\n<\/div>\n<\/div>\n
\n
\n
because remember we are repeatedly<\/div>\n<\/div>\n<\/div>\n
\n
\n
selling the 850 calls each week so now<\/div>\n<\/div>\n<\/div>\n
\n
\n
those calls are only<\/div>\n<\/div>\n<\/div>\n
\n
\n
five points from the price of the stock<\/div>\n<\/div>\n<\/div>\n
\n
\n
with only four days to go before<\/div>\n<\/div>\n<\/div>\n
\n
\n
earnings and even those 780 puts are<\/div>\n<\/div>\n<\/div>\n
\n
\n
really pumped up in priced because even<\/div>\n<\/div>\n<\/div>\n
\n
\n
though they are 65 points below the<\/div>\n<\/div>\n<\/div>\n
\n
\n
money with a high-priced stock like CMG<\/div>\n<\/div>\n<\/div>\n
\n
\n
a 65 point downward move is not possible<\/div>\n<\/div>\n<\/div>\n
\n
\n
if CMG has a terrible earnings report so<\/div>\n<\/div>\n<\/div>\n
\n
\n
we’re being paid hugely as you can see<\/div>\n<\/div>\n<\/div>\n
\n
\n
for these short options you can see<\/div>\n<\/div>\n<\/div>\n
\n
\n
we’re getting paid twenty seven dollars<\/div>\n<\/div>\n<\/div>\n
\n
\n
and 88 cents for those calls and eight<\/div>\n<\/div>\n<\/div>\n
\n
\n
dollars and 81 cents for those puts and<\/div>\n<\/div>\n<\/div>\n
\n
\n
since each of those options represents<\/div>\n<\/div>\n<\/div>\n
\n
\n
100 shares we’re getting paid a whopping<\/div>\n<\/div>\n<\/div>\n
\n
\n
three thousand six hundred sixty nine<\/div>\n<\/div>\n<\/div>\n
\n
\n
dollars for the shorts whereas in the<\/div>\n<\/div>\n<\/div>\n
\n
\n
previous weeks with short options not<\/div>\n<\/div>\n<\/div>\n
\n
\n
exposed to earnings we were getting<\/div>\n<\/div>\n<\/div>\n
\n
\n
somewhere in the neighborhood of five<\/div>\n<\/div>\n<\/div>\n
\n
\n
hundred to a thousand dollars for this<\/div>\n<\/div>\n<\/div>\n
\n
\n
short call and the short put in the new<\/div>\n<\/div>\n<\/div>\n
\n
\n
week now we’re getting three thousand<\/div>\n<\/div>\n<\/div>\n
\n
\n
six hundred sixty nine dollars that’s a<\/div>\n<\/div>\n<\/div>\n
\n
\n
massive increase and that’s because<\/div>\n<\/div>\n<\/div>\n
\n
\n
earnings are coming very shortly so now<\/div>\n<\/div>\n<\/div>\n
\n
\n
it’s important to understand exactly<\/div>\n<\/div>\n<\/div>\n
\n
\n
what that means so if we look at the<\/div>\n<\/div>\n<\/div>\n
\n
\n
cash flow coming into the final week of<\/div>\n<\/div>\n<\/div>\n
\n
\n
the trade we find something amazing if<\/div>\n<\/div>\n<\/div>\n
\n
\n
you add the cash inflow from selling<\/div>\n<\/div>\n<\/div>\n
\n
\n
those final pumped-up options in the<\/div>\n<\/div>\n<\/div>\n
\n
\n
week before expiration you’ll see<\/div>\n<\/div>\n<\/div>\n
\n
\n
something amazing which is now just by<\/div>\n<\/div>\n<\/div>\n
\n
\n
rolling those same strike call and put<\/div>\n<\/div>\n<\/div>\n
\n
\n
options each week from one week to<\/div>\n<\/div>\n<\/div>\n
\n
\n
another<\/div>\n<\/div>\n<\/div>\n
\n
\n
we now have positive cash flow in the<\/div>\n<\/div>\n<\/div>\n
\n
\n
trade and that positive flow is 1517<\/div>\n<\/div>\n<\/div>\n
\n
\n
dollars we’ve basically paid ourselves<\/div>\n<\/div>\n<\/div>\n
\n
\n
back for the total cost of the original<\/div>\n<\/div>\n<\/div>\n
\n
\n
strangle that that expired after<\/div>\n<\/div>\n<\/div>\n
\n
\n
expiration week plus we received an<\/div>\n<\/div>\n<\/div>\n
\n
\n
additional $1,500 through this campaign<\/div>\n<\/div>\n<\/div>\n
\n
\n
of selling the options against those<\/div>\n<\/div>\n<\/div>\n
\n
\n
Long’s now let’s move forward to the<\/div>\n<\/div>\n<\/div>\n
\n
\n
expiration day of the option in this of<\/div>\n<\/div>\n<\/div>\n
\n
\n
the options in this trade all of which<\/div>\n<\/div>\n<\/div>\n
\n
\n
now expire on October 25th so an<\/div>\n<\/div>\n<\/div>\n
\n
\n
expiration day the CMG closed at 792 it<\/div>\n<\/div>\n<\/div>\n
\n
\n
turns out the market did not like its<\/div>\n<\/div>\n<\/div>\n
\n
\n
earnings report and so let’s see what<\/div>\n<\/div>\n<\/div>\n
\n
\n
happens with each option well the long<\/div>\n<\/div>\n<\/div>\n
\n
\n
call at 855 that we bought a month ago<\/div>\n<\/div>\n<\/div>\n
\n
\n
and the short quality 50 that we sold<\/div>\n<\/div>\n<\/div>\n
\n
\n
last week well those both expire<\/div>\n<\/div>\n<\/div>\n
\n
\n
worthless<\/div>\n<\/div>\n<\/div>\n
\n
\n
because the stock is trading 60 points<\/div>\n<\/div>\n<\/div>\n
\n
\n
or so below those options so the right<\/div>\n<\/div>\n<\/div>\n
\n
\n
to buy the CMG shares at 8:50 and 8:55<\/div>\n<\/div>\n<\/div>\n
\n
\n
have no value and the 780 short puts we<\/div>\n<\/div>\n<\/div>\n
\n
\n
sold last week and the 775 puts we<\/div>\n<\/div>\n<\/div>\n
\n
\n
bought a month ago<\/div>\n<\/div>\n<\/div>\n
\n
\n
well those expire worthless also because<\/div>\n<\/div>\n<\/div>\n
\n
\n
they have no value CMG is trading at 792<\/div>\n<\/div>\n<\/div>\n
\n
\n
so no one is gonna sell their shares for<\/div>\n<\/div>\n<\/div>\n
\n
\n
780 or less when they’re trading at 792<\/div>\n<\/div>\n<\/div>\n
\n
\n
obviously so all four options go out<\/div>\n<\/div>\n<\/div>\n
\n
\n
worthless which means something great<\/div>\n<\/div>\n<\/div>\n
\n
\n
and that is that the trade is over but<\/div>\n<\/div>\n<\/div>\n
\n
\n
we still have our 1,500 dollars of cash<\/div>\n<\/div>\n<\/div>\n
\n
\n
flow that we collected during the<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading by the campaign of rolling those<\/div>\n<\/div>\n<\/div>\n
\n
\n
short options every week now I do want<\/div>\n<\/div>\n<\/div>\n
\n
\n
to caution you for reasons that we can<\/div>\n<\/div>\n<\/div>\n
\n
\n
go into in another video that had CMG<\/div>\n<\/div>\n<\/div>\n
\n
\n
closed above 850 or below 780 that there<\/div>\n<\/div>\n<\/div>\n
\n
\n
was a possibility that the trade could<\/div>\n<\/div>\n<\/div>\n
\n
\n
have yielded as little as $1,000 in<\/div>\n<\/div>\n<\/div>\n
\n
\n
profit but once we sold those final<\/div>\n<\/div>\n<\/div>\n
\n
\n
short calls and puts an expiration week<\/div>\n<\/div>\n<\/div>\n
\n
\n
there was no way that the trade could<\/div>\n<\/div>\n<\/div>\n
\n
\n
have lost money it the minimum would<\/div>\n<\/div>\n<\/div>\n
\n
\n
have made would have been $1,000 so what<\/div>\n<\/div>\n<\/div>\n
\n
\n
I’d like you to take away from this<\/div>\n<\/div>\n<\/div>\n
\n
\n
video is the fact that professional<\/div>\n<\/div>\n<\/div>\n
\n
\n
options traders find all sorts of ways<\/div>\n<\/div>\n<\/div>\n
\n
\n
to take advantage of the unique changes<\/div>\n<\/div>\n<\/div>\n
\n
\n
in options pricing especially as they<\/div>\n<\/div>\n<\/div>\n
\n
\n
approach earnings through understanding<\/div>\n<\/div>\n<\/div>\n
\n
\n
options behavior you could unlock a lot<\/div>\n<\/div>\n<\/div>\n
\n
\n
of potential profits in areas that you<\/div>\n<\/div>\n<\/div>\n
\n
\n
might never have thought possible just<\/div>\n<\/div>\n<\/div>\n
\n
\n
to remind you as I said earlier if you<\/div>\n<\/div>\n<\/div>\n
\n
\n
enjoyed this video and learn something<\/div>\n<\/div>\n<\/div>\n
\n
\n
valuable from it and would like to learn<\/div>\n<\/div>\n<\/div>\n
\n
\n
the details of 3 real-world option<\/div>\n<\/div>\n<\/div>\n
\n
\n
strategies that professional options<\/div>\n<\/div>\n<\/div>\n
\n
\n
traders use all the time then you should<\/div>\n<\/div>\n<\/div>\n
\n
\n
check out the free options class that<\/div>\n<\/div>\n<\/div>\n
\n
\n
we’re currently running just go ahead<\/div>\n<\/div>\n<\/div>\n
\n
\n
and click the link that should be<\/div>\n<\/div>\n<\/div>\n
\n
\n
appearing now at the top right corner of<\/div>\n<\/div>\n<\/div>\n
\n
\n
your screen<\/div>\n<\/div>\n<\/div>\n
\n
\n
that will open the free registration<\/div>\n<\/div>\n<\/div>\n
\n
\n
page in a new window so you won’t lose<\/div>\n<\/div>\n<\/div>\n
\n
\n
this video don’t worry or you can just<\/div>\n<\/div>\n<\/div>\n
\n
\n
go ahead and head on over to options<\/div>\n<\/div>\n<\/div>\n
\n
\n
class com to register for this free<\/div>\n<\/div>\n<\/div>\n
\n
\n
intensive workshop it’s really a rare<\/div>\n<\/div>\n<\/div>\n
\n
\n
opportunity for retail traders and<\/div>\n<\/div>\n<\/div>\n
\n
\n
investors to learn directly from Wall<\/div>\n<\/div>\n<\/div>\n
\n
\n
Street traders but that’s exactly what<\/div>\n<\/div>\n<\/div>\n
\n
\n
you’ll be getting through this free<\/div>\n<\/div>\n<\/div>\n
\n
\n
online workshop so click the link to<\/div>\n<\/div>\n<\/div>\n
\n
\n
sign up now and<\/div>\n<\/div>\n<\/div>\n
\n
\n
don’t miss it and if you found this<\/div>\n<\/div>\n<\/div>\n
\n
\n
video helpful don’t forget to press on<\/div>\n<\/div>\n<\/div>\n
\n
\n
the subscribe button because we’re gonna<\/div>\n<\/div>\n<\/div>\n
\n
\n
continue to shoot more and more videos<\/div>\n<\/div>\n<\/div>\n
\n
\n
with these kinds of valuable trade ideas<\/div>\n<\/div>\n<\/div>\n
\n
\n
in the future and you won’t want to miss<\/div>\n<\/div>\n<\/div>\n
\n
\n
them and while you’re at it leave us a<\/div>\n<\/div>\n<\/div>\n
\n
\n
comment for what you liked about this<\/div>\n<\/div>\n<\/div>\n
\n
\n
video and what other types of videos<\/div>\n<\/div>\n<\/div>\n
\n
\n
you’d like us to produce for you in the<\/div>\n<\/div>\n<\/div>\n
\n
\n
future and we’ll see if we can make that<\/div>\n<\/div>\n<\/div>\n
\n
\n
happen<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n
\n
<\/div><\/div>\n<\/div>\n<\/div>\n

\"\"<\/a><\/p>\n

* no relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"

Weekly options can be used to create a surprising amount of cash flow if you employ the double diagonal strategy leading up to earnings. In this video we show you an example of using weekly options in CMG to create a potentially risk free trade as CMG heads into its quarterly earnings release. * no relevant positions<\/p>\n","protected":false},"author":290,"featured_media":49477,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[4189],"tags":[],"class_list":["post-49476","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-free-daily-trading-video","post_format-post-format-video"],"yoast_head":"\nWeekly Options: Double Diagonal for Risk-Free Earnings | SMB Training<\/title>\n<meta name=\"description\" content=\"Learn how to use a double diagonal options strategy for risk-free earnings play. Join us now!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Weekly Options: Double Diagonal for Risk-Free Earnings | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Learn how to use a double diagonal options strategy for risk-free earnings play. Join us now!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-12-27T15:08:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-08T19:16:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2019\/12\/weekly-options-cash-flow-double-diagonal-.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"smbcapital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"smbcapital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"14 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play\"},\"author\":{\"name\":\"smbcapital\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/57cc9affbbb6763e0012594ad884b25a\"},\"headline\":\"Weekly Options: Double Diagonal Strategy for Risk-Free Earnings\",\"datePublished\":\"2019-12-27T15:08:03+00:00\",\"dateModified\":\"2023-06-08T19:16:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play\"},\"wordCount\":3134,\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2019\/12\/weekly-options-cash-flow-double-diagonal-.jpg\",\"articleSection\":[\"Free Daily Trading Video\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play\",\"name\":\"Weekly Options: Double Diagonal for Risk-Free Earnings | SMB Training\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2019\/12\/weekly-options-cash-flow-double-diagonal-.jpg\",\"datePublished\":\"2019-12-27T15:08:03+00:00\",\"dateModified\":\"2023-06-08T19:16:33+00:00\",\"description\":\"Learn how to use a double diagonal options strategy for risk-free earnings play. Join us now!\",\"breadcrumb\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#primaryimage\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2019\/12\/weekly-options-cash-flow-double-diagonal-.jpg\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2019\/12\/weekly-options-cash-flow-double-diagonal-.jpg\",\"width\":1920,\"height\":1080},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.smbtraining.com\/blog\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Weekly Options: Double Diagonal Strategy for Risk-Free Earnings\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"name\":\"SMB Training Blog\",\"description\":\"Lessons from the trading desk\",\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\",\"name\":\"SMB Training\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"width\":230,\"height\":81,\"caption\":\"SMB Training\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/smbcap\/\",\"https:\/\/x.com\/smbcapital\",\"https:\/\/www.youtube.com\/user\/smbcapital\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/57cc9affbbb6763e0012594ad884b25a\",\"name\":\"smbcapital\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/author\/smbcapital\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Weekly Options: Double Diagonal for Risk-Free Earnings | SMB Training","description":"Learn how to use a double diagonal options strategy for risk-free earnings play. Join us now!","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play","og_locale":"en_US","og_type":"article","og_title":"Weekly Options: Double Diagonal for Risk-Free Earnings | SMB Training","og_description":"Learn how to use a double diagonal options strategy for risk-free earnings play. Join us now!","og_url":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play","og_site_name":"SMB Training Blog","article_publisher":"https:\/\/www.facebook.com\/smbcap\/","article_published_time":"2019-12-27T15:08:03+00:00","article_modified_time":"2023-06-08T19:16:33+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2019\/12\/weekly-options-cash-flow-double-diagonal-.jpg","type":"image\/jpeg"}],"author":"smbcapital","twitter_card":"summary_large_image","twitter_creator":"@smbcapital","twitter_site":"@smbcapital","twitter_misc":{"Written by":"smbcapital","Est. reading time":"14 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#article","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play"},"author":{"name":"smbcapital","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/57cc9affbbb6763e0012594ad884b25a"},"headline":"Weekly Options: Double Diagonal Strategy for Risk-Free Earnings","datePublished":"2019-12-27T15:08:03+00:00","dateModified":"2023-06-08T19:16:33+00:00","mainEntityOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play"},"wordCount":3134,"publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#primaryimage"},"thumbnailUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2019\/12\/weekly-options-cash-flow-double-diagonal-.jpg","articleSection":["Free Daily Trading Video"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play","url":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play","name":"Weekly Options: Double Diagonal for Risk-Free Earnings | SMB Training","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#primaryimage"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#primaryimage"},"thumbnailUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2019\/12\/weekly-options-cash-flow-double-diagonal-.jpg","datePublished":"2019-12-27T15:08:03+00:00","dateModified":"2023-06-08T19:16:33+00:00","description":"Learn how to use a double diagonal options strategy for risk-free earnings play. Join us now!","breadcrumb":{"@id":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#primaryimage","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2019\/12\/weekly-options-cash-flow-double-diagonal-.jpg","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2019\/12\/weekly-options-cash-flow-double-diagonal-.jpg","width":1920,"height":1080},{"@type":"BreadcrumbList","@id":"https:\/\/www.smbtraining.com\/blog\/weekly-options-using-double-diagonal-options-strategy-to-set-up-a-potentially-risk-free-earnings-play#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.smbtraining.com\/blog"},{"@type":"ListItem","position":2,"name":"Weekly Options: Double Diagonal Strategy for Risk-Free Earnings"}]},{"@type":"WebSite","@id":"https:\/\/www.smbtraining.com\/blog\/#website","url":"https:\/\/www.smbtraining.com\/blog\/","name":"SMB Training Blog","description":"Lessons from the trading desk","publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.smbtraining.com\/blog\/#organization","name":"SMB Training","url":"https:\/\/www.smbtraining.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","width":230,"height":81,"caption":"SMB Training"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/smbcap\/","https:\/\/x.com\/smbcapital","https:\/\/www.youtube.com\/user\/smbcapital"]},{"@type":"Person","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/57cc9affbbb6763e0012594ad884b25a","name":"smbcapital","url":"https:\/\/www.smbtraining.com\/blog\/author\/smbcapital"}]}},"_links":{"self":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/49476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/users\/290"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/comments?post=49476"}],"version-history":[{"count":3,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/49476\/revisions"}],"predecessor-version":[{"id":55685,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/49476\/revisions\/55685"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/media\/49477"}],"wp:attachment":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/media?parent=49476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/categories?post=49476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/tags?post=49476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}