Horizontal Spread Explained

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InDesign: horizontal to vertical spread

I have a horizontal spread of pages (1 and 2 side by side). I need to get page 2 at the bottom of page 1.

How can I achieve this? I have tried manually drag, but as these are master pages applied, it’s getting difficult to move them to along with content.

2 Answers 2

The actual pages do not rotate, but your view of them while working can.

Select both pages in the spread. Right click to get the below options. Page Attribute > Rotate Spread View > 90˚ CW. You can see the little rotate icon next to the spread now that says it is rotated. Hope this helps.

There are no vertical spreads built-in as far as i know. You will have to create a new document with a page size of 2x the height. For example if the page size is A4, start a new document without spreads and set the page size to 210x594mm.

Or, you could try this workaround, however the post is quite old and not sure if this works in recent versions of InDesign. Some comments there saying it does not work with ID CC.

If you’re making a calendar or some other item with top binding, note you may actually not need to prepare this vertical page flow in InDesign. Just sending single non-facing pages to the printer could be enough. It will then be their job to set the machines so that the product ends up with a top binding.

Real-World Trading: The Diagonal Spread

Apr 15, 2003 3:49 PM EDT

One of the biggest advantages of trading options is the ability to create numerous strategies that can fit your risk profile and market outlook. However, this flexibility comes at a cost, which is time. Because so many strategies can be implemented using options and stocks, we need to spend time understanding them.

I particularly like options because they allow us to hedge risk while still achieving solid profits. If we choose to trade only stocks, we’re limited to bullish or bearish outlooks. But stocks often trade sideways, meandering back and forth in a range. We’re looking for this type of movement — or lack thereof — in a stock when we’re interested in entering a diagonal spread.

Before going into the details, I’ll first define a spread in general. We often hear the term vertical spread or horizontal spread, so let me explain why these spreads are so named. When options were first introduced, a trader would find these on an options chain. The strikes would be listed vertically, while the months would be listed horizontally. When we trade a vertical spread, we are using the same months, but different strikes. Horizontal spreads use the same strike, but different months.

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Thus, a bull call or bear put spread are considered vertical spreads, while a calendar spread is also called a horizontal spread. When we use different strikes and different months, we are moving diagonally across the page, thus the name diagonal spread.

There are various ways to use a diagonal spread, but for our purposes, we’ll discuss the normal use of a diagonal spread. This is when we sell a front-month, lower-strike call option and buy a longer-term, higher-strike call option or when we sell a front-month higher-strike put option and buy the longer-term, lower-strike put. Here’s a basic risk graph of a diagonal call spread.

Diagonal and calendar spreads use two different expiration months. Thus, the risk graph is a picture of the trade at the time the front-month option expires.

When looking at any strategy, ask yourself when to use it to your advantage. For diagonal spreads, look for stocks that you think will consolidate for some time and then move sharply in one direction or the other. If you feel the move will be up long term, then you’d want to use calls.

You would use puts if your outlook is flat and then down. In order to maximize your profits, you want to sell options that are overpriced and buy options that are underpriced. You’d find this out by looking at the implied volatility, or IV, of the stock’s options.

You’d like to see a skew between the IV for the front-month options and the back-month options. Just like when trading calendar spreads, you’d like to see this skew at 15% or greater. As the IV comes down on the overpriced front-month option, your profits increase. However, the largest advantage to a calendar or time spread is the passage of time.

We often discuss how we don’t want to buy options with fewer than 45 days until expiration. This is because time decay accelerates the last month of an option’s life. By selling front-month options, we get to keep the premium received as long as the option doesn’t move into the money at expiration. Thus, each month you feel the stock is going to consolidate, you can sell another month of premium to pay down the cost of the long-term option.

The initial cost for a diagonal spread will normally be less than for a calendar spread. This is because we are buying a further out-of-the-money call or put. However, because there is risk between the sold option and the purchased option, your broker will require a margin account. However, the amount at risk is only the difference between strikes, so the margin required should be minimal.

One reader posted the following trade on my

discussion board on Optionetics.com.

    Dreyer’s Grand Ice Cream (DRYR) Sell 1 APR03 70 Call @ 2.3 Buy 1 SEP03 75 Call @ 1.3

Here is the risk graph for this trade as of the entry date:

Dreyer’s is showing high IV for the front-month options because of an impending buyout. If the deal goes through, the stock could soar to the $85 level, but if it doesn’t, it’s likely to consolidate at a lower price. Nonetheless, while the debate continues about the buyout, this diagonal spread has little risk. You won’t normally get a credit for entering a diagonal spread, but it all depends on the strikes and IV of the options.

Overall, you can use diagonal spreads much like calendar spreads. You want to find stocks that are likely to consolidate for a few months before making a move. It also helps to have at least a 15% skew between the sold and purchased options.

By Jody Osborne, senior writer and options strategist at

29 Option Spread Strategies You Need to Know (Part 1)

February 2, 2020 @ 2:09 pm

Billy Williams

In a series of recent articles on stockinvestor.com, I explained some basics of option spread trading. If you are new to option spread trading, I suggest that you read these articles before moving on to specific details on individual option spread strategies.

I will outline many different options spread strategies. The huge number of strategies might seem intimidating at first. Don’t worry. I will explain which ones to use if our approach is bullish, bearish or neutral. Knowing which approach to use makes navigating complex option spread strategies simple.

Types of Spread Strategies

There are three basic types of option spread strategies — vertical spread, horizontal spread and diagonal spread. These names come from the relationship between the strike price and the expiration dates of all options involved in the specific trade. Some of the more complicated strategies include intermarket, exchange and delivery spreads, intercommodity and commodity spreads.

I will mention briefly some of those more complicated strategies. However, the key is that we do not need complicated spread strategies to trade successfully in the options market. Understanding these complex strategies requires a significant amount of research and analysis. However, unless you understand option markets well, the advantage gained might not be worth the additional effort.

Therefore, I will focus on explaining the basic option spread trades. For now, we will forget about intermarket, intrasecurity, and cross-commodity spreads beyond their basic definition.

Vertical spread refers to moving up or down the pricing list to find differently priced options in the same expiration month and with the same underlying security. Anyone familiar with online options pricing knows how to go up and down to find differently priced options. This process is identical for calls and puts.

Horizontal spread refers to moving along the expiration date at the same price level.

Diagonal spread refers to moving along both the strike price and the expiration date.

Example

Source Yahoo! Finance. This table of a GOOGL option price chart for February 3, 2020, shows puts priced in the $865 to $875 range. The date range is different from GOOGL pricing examples used in some other articles.

Often, option prices will have the calls on one side of the strike price and the puts on the other side. To engage in a vertical spread, I would buy an $865 put and sell an $875 put. Those options are shown in the image above.

For a horizontal spread, I would buy an $875 February put and perhaps sell an $875 March put. The horizontal part of that trade comes from moving from February to March or any other month past February.

The diagonal spread trade would be buying an $865 February put and perhaps selling an $875 March put or buying an $875 March call or selling an $865 February put. It is not important whether I buy or sell a put or a call. The important aspect is that I have crossed into a new month and I have selected a new price.

Options spread strategies are known often by more specific terms than three basic types. Some of the names for options spread strategies are terms such as bull calendar spread, collar, diagonal bull-call spread, strangle, condor and a host of other strange-sounding names.

Intermarket and intercommodity option trading

Intermarket option spread trading or interexchange option spread trading refers to trading options across different markets and exchanges. This type of option trading is sometimes also a form of arbitrage for price discrepancies across different markets.

Intercommodity option spread trading involves trading options based on different underlying commodities. Someone can buy a natural gas future and sell a crude oil future or buy a natural gas option on futures and sell crude oil options on futures. A disadvantage of intercommodity option trading is the increased option pricing complexity. Additionally, I also must become an expert in two separate markets very quickly when I engage in intercommodity trading.

We can apply any of the tools and strategies I discuss to all different kinds of trades. However, the more complex trading strategies are usually only beneficial if you have exhausted all alternative trading and investing strategies. To keep things simple, I will not get involved with cross-market, cross-commodity, or cross-exchange trades.

My focus is on intermarket and delivery spread trading. This type of trading is relatively simple to execute. It focuses on a particular security and demands changing only the strike price or the exercise date.

I will provide full explanations and detailed guidance only for the low-risk options spread strategies. To offer a complete account of available option spread strategies, I will provide basic definitions for the high-risk strategies as well. Please note that I generally do not recommend these high-risk options as viable strategies for novice and average option traders.

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