When I buy a option spread with different calendar dates (september, 10-17-24, october, 1), should I close every leg manualy or they will be closed automatically even if they expired ITM ? enter image description here

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1 Answer 1


Your position isn't clear. The first 4 option positions listed are a pair of short horizontal spreads, not diagonals.

A diagonal spread involves a long and short position in two options of the same type (two puts or two calls) with different strike prices and different expiration dates.

If you combine a diagonal call spread with a diagonal put spread then it's a double diagonal spread which is effectively buying a longer term straddle and selling one shorter-term strangle (or vice versa), which you have not done. Buying a double diagonal means buying the far dated expiration not the near dated one.

Your last 4 positions are all short positions so I don't know what to make of them. They're not spreads.

You can close legs individually but if you want to close both sides of a spread, a spread order is a more effective way of doing so.

The OCC will automatically assign options that that expire ITM unless the owner of the long options designates that they not be exercised.

  • sorry for being unclear, that is because when I asked the question, I had not any knowledge in spreads, but after reading and trying some trades ; now when I read my question, it doesn't make sense. (the first spread is double diagonal as it is in spread book, but the second is completely random from me as i were very beginner)
    – huab
    Sep 9, 2021 at 19:23

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