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the trader suggests to implement a trading strategy using IBM stock options. The overall strategy consists of two phases: a diagonal spread and a calendar

the trader suggests to implement a trading strategy using IBM stock options. The overall strategy consists of two phases: a diagonal spread and a calendar spread

  1. Briefly describe the details of the first phase and its purposes.

  1. In the video, the trader says that the diagonal spread will benefit from an increase in volatility. How does he justify such statement?

  1. What is the main difference between the diagonal and the calendar in terms of profits and losses?

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