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Let's say company A is currently trading at 100.

I bought to open 10 puts for company A at 100 strike price in Jan 2015.

What risk am I exposed to by selling shorter term weekly puts (strike < 100) against that position?

For example, I sell to open 10 puts at 90 strike price that expire this week. If at the end of the week, the stock ends at 95, I pocket the premium. On the other hand, if the stock ends at 85, shouldn't my broker be able to convert my long puts to cover it?

Seems like it should work like a covered call... but can't find the name of this strategy by searching in google.

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Figured it out. Diagonal spread

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