{"id":217633,"date":"2026-08-25T12:21:22","date_gmt":"2026-08-25T06:51:22","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217633"},"modified":"2026-08-25T12:21:23","modified_gmt":"2026-08-25T06:51:23","slug":"diagonal-spread-nifty-midcap-select","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/diagonal-spread-nifty-midcap-select\/","title":{"rendered":"Diagonal Spread Nifty Midcap Select: Setup, Payoff and Risk Guide"},"content":{"rendered":"
<\/div>\n

Nifty Midcap Select level used in this article: Rs 13,850 (as of illustrative reference level; verify current level on NSE). Next monthly (last Tuesday of the month) expiry: 25 August 2026 (Tuesday). Lot size 120. Weekly options on Nifty Midcap Select were discontinued in November 2024 under SEBI’s one weekly index per exchange rule; only monthly contracts remain.<\/em><\/p>\n

\n

Quick Answer<\/strong><\/p>\n

The diagonal spread Nifty Midcap Select combines two elements found in other options strategies: it sells a near month option and buys a far month option like a calendar spread, but uses different strikes on each leg rather than the same strike, adding a directional bias on top of the time decay differential. With Nifty Midcap Select at Rs 13,850, the diagonal spread Nifty Midcap Select is typically a net debit trade that may profit from a combination of the index moving moderately toward the long strike and the near month option decaying faster than the far month option. Because it combines two variables, the diagonal spread Nifty Midcap Select is generally considered more complex to manage than a single strike calendar spread or a same expiry vertical spread.<\/p>\n<\/div>\n

The this strategy gets its name from the fact that, when strikes and expiries are plotted on a grid, the position occupies a diagonal line rather than a single row (same strike, different expiries, like a calendar spread) or a single column (same expiry, different strikes, like a bull call spread). This gives the diagonal spread Nifty Midcap Select a payoff profile that shifts over time as the near month expiry approaches and the position’s effective delta and directional exposure change.<\/p>\n

A common construction is the call diagonal spread: buying a far month call at a strike closer to or below the current index level, and selling a near month call at a higher, out of the money strike. This structure resembles a bull call spread in its directional bias but benefits from the near month option’s faster time decay, similar to a calendar spread.<\/p>\n

Click Here – Get Free Investment Predictions<\/strong><\/a><\/p>\n

\n
\n

Table of Contents<\/p>\nToggle<\/span><\/path><\/svg><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n