A bullish diagonal spread is a trade that involves buying a long-term call option and selling a shorter-term, out- of-the-money call option against it. We're looking for a controlled move higher over the next few weeks. Not a massive surge, but steady bullish action that allows the short call to decay while the long call retains value. How To Play The Diagonal Spread Buying a Dec. 19, 130-strike call will cost around $1,865 and selling the Nov. 21, 150-strike call option will generate around $645 in premium ...