calendar spread vs diagonal spread

[idk0098]

hi rookie here sorry for so basic questions i just cant figure them out by my self

 

why should we use calendar spread when we can do diagonal spreads if i want to say more specific

in calendar spread you have less profit when the stocks move up or down compare to the diagonal that you have more profit 

i hope you understand my question i feel i typed it soo bad😂

thank you in advanced

 

[Optrader]

You are correct .

Diagonal has more profit than calendar.

But it also has more loss than calendar if stock moves the other way.

so if you want to bias a trade with direction then diagonalizing will make sense.

we typically want to stay direction neutral while profit more on theta and vega.

with diagonal you are profiting less on theta and vega % wise and more on direction

[Gery]

A diagonal spread always contains an embedded calendar and short vertical. That is why it is more directional. If you a ITM close to expiration, it can "sink" very fast, so you need to manage the position.