{"id":217641,"date":"2026-08-25T12:37:47","date_gmt":"2026-08-25T07:07:47","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217641"},"modified":"2026-08-25T12:37:48","modified_gmt":"2026-08-25T07:07:48","slug":"diagonal-spread-nifty-it","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/diagonal-spread-nifty-it\/","title":{"rendered":"Diagonal Spread Nifty IT: Setup, Payoff and Risk Guide"},"content":{"rendered":"
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Nifty IT level used in this article: Rs 38,548 (as of 18 Dec 2025 (most recently confirmed close; verify current level on NSE)). Next monthly (last Tuesday of the month) expiry: 25 August 2026 (Tuesday). Lot size 25. Weekly options on Nifty IT were discontinued in November 2024 under SEBI’s one weekly index per exchange rule; only monthly contracts remain.<\/em><\/p>\n

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

The diagonal spread Nifty IT 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 IT at Rs 38,548, the diagonal spread Nifty IT 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 IT 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 IT 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

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