News

Asian stocks rose slightly on Thursday, and the dollar gained a bit as traders evaluated trade talks between the U.S. and Japan, while concerns over tariffs introduced by President Donald Trump kept the mood cautious. Markets were also digesting comments by Federal Reserve Chair Jerome Powell yesterday. Fed Chair Jerome Powell gave a firm hawkish […]

The post Europe’s Opening Bell: Stock Indices Rise on Positive US-Japan Talks, ECB Meeting Comes into Focus appeared first on Action Forex.

The GBP/USD pair climbed for seven consecutive days, reaching 1.3210, before experiencing a slight dip on Thursday. This marks the longest sustained rise for the currency pair since July last year, with the pound’s strength primarily driven by a weakening US dollar. Key factors influencing GBP/USD movements Fundamentally, the outlook remains mixed. The UK’s Consumer Price Index (CPI) fell more […]

The post Pound Among the Winners Boosted by US Dollar Weakness and Rate Cut Prospects appeared first on Action Forex.

It’s been a good day for crude oil yesterday as the market benefited from a couple of positive headlines. The first one came in the European session when we got the Bloomberg report saying that China was open for talks with US. That triggered a quick rally as markets look forward to de-escalation on trade front to price out growth fears.

Then we got fresh US sanctions targeting Iran oil tankers in the American session, which provided further support to prices although the bulk of the move was caused by the Chinese headline in the morning. This just shows how laser focused the market is on anything regarding trade negotiations.

On the 1 hour chart, we can see that the price is now back at testing the key resistance zone around the 62.00-64.00 area. The sellers will likely continue to step in here with a defined risk above the resistance to keep targeting new lows, while the buyers will look for a break higher to invalidate the bearish setup and position for a rally into the 72.00 level next.

For now, we are just ranging between the 59.00 support and the 63.00 resistance. A breakout on either side should see the momentum increasing.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

Key insights from the week that was. In Australia, the RBA Minutes from the April meeting provided some extra colour around the Policy Board’s deliberations. Despite pre-dating President Trump’s ‘Liberation Day’ tariff announcements and the subsequent volatility in markets, many of the statements around the potential impact on Australia remain relevant, especially that “the effects […]

The post Cliff Notes: Patient Posture appeared first on Action Forex.

While on a client trip through Europe and North America, I have seen investors go through all five stages of financial market grief about the US: confusion, fatalism, denial, revulsion – and reallocation What a time to be on a client trip through Europe and North America. The ‘US exceptionalism’ narrative that prevailed between the […]

The post TINA McRAE Says ‘Watch Out Ahead!’ appeared first on Action Forex.

Learn Calendar and Diagonal Spreads: Mastering Time-Based Options Strategies

Welcome to Article 6 of the Learn Options Series, where we introduce time-based strategies that add another layer of control and opportunity to your stock options education. These setups go beyond simple directional trades by incorporating the powerful element of time decay to your advantage.

If you’re advancing in your journey of learning options, calendar and diagonal spreads can help you profit from volatility, timing, and price movement with a sophisticated but accessible approach.

What Are Calendar and Diagonal Spreads?

Both strategies involve options with different expiration dates (unlike vertical spreads which share the same expiry).

• Calendar Spreads: Same strike, different expirations

• Diagonal Spreads: Different strike and different expiration

Both are ideal for traders who want to benefit from time decay (Theta) and changes in volatility (Vega).

Calendar Spreads (Time Spreads)

When to Use It:

• You expect the stock to stay near a specific price (neutral outlook)

• You want to benefit from faster time decay in the short-term option

Structure:

• Sell a near-term option

• Buy a longer-term option (same strike)

Example:
Stock ABC trades at $60.

• Sell 1-week $60 call for $1.00

• Buy 1-month $60 call for $2.50

• Net Debit = $1.50

Goal: The stock remains close to $60 by the short option’s expiration

Why It Works:

• Short option decays faster → You profit as long as the stock stays near the strike

• A controlled way to benefit from time decay and volatility expansion

Diagonal Spreads

When to Use It:

• You expect directional movement and want to take advantage of time decay

• You want to build a longer-term position while managing near-term exposure

Structure:

• Sell a short-term option (near-term expiration)

• Buy a longer-term option at a different strike (usually in the direction of your bias)

Example:
Stock XYZ is at $55.

• Sell 1-week $57 call for $1.10

• Buy 1-month $60 call for $2.30

• Net Debit = $1.20

Goal: Stock rises toward—but not far beyond—$57 in the near term

Why It Works:

• Combines the Vega benefit of long-dated options with the Theta decay of short-dated options

• Lets you trade a directional setup while earning short-term premium

Pros of Calendar and Diagonal Spreads in Stock Options Education

• Time Advantage: Profit from the difference in time decay between short and long legs

• Volatility Play: A rise in implied volatility benefits these strategies

• Defined Risk: Net debit paid is the maximum potential loss

• Strategic Flexibility: You can roll or adjust based on movement

Watch Outs for Learners

• Rapid Movement Can Hurt: These are best when the stock doesn’t move too aggressively

• IV Crush: If implied volatility drops suddenly, the long leg can lose value

• Liquidity Considerations: Rolling requires active management

Wrapping Up: Learning Options Through Time-Based Spreads

Calendar and diagonal spreads help you take your options trading beyond simple buying or verticals. By understanding how time, volatility, and price interact, you’ll begin building strategies that thrive in more nuanced market conditions.

These spreads are excellent tools in your options trading 101 evolution—and provide a great stepping stone to advanced setups like iron condors and double diagonals.

Coming up next in the Learn Options Series: Advanced Option Spreads – Iron Condors, Butterflies, and Beyond.

Stay tuned with ForexLive.com (evolviong to investingLive.com later this year), where we continue to deliver clear, strategic, and practical investing education for real-world traders and investors.

This article was written by Itai Levitan at www.forexlive.com.

• Maintaining normal communication with US counterparts
• China is open to negotiations on economic, trade areas
• Calls for US to stop threats and blackmail, to resolve issues on basis of mutual respect

This when asked about the notion that Trump says the ball is in China’s court. In essence, they’re throwing the ball back over or at least trying to make sure that the US actually knows that the ball is actually in Trump’s side of the court instead. And so the dance continues..

This article was written by Justin Low at www.forexlive.com.