Sometimes option traders have a very specific view on what will happen in the short term and what will happen in the long term to an underlying security. What happens next is that he details a strategy that allows him to minimize his cost of setting up a trade and capturing any profits that come along with his view. These are some of the strategies that allow an option trader to do just that, using options with different expiration dates.
1. Execute A Diagonal bear put spread: Long position in long term puts & sale of near term puts
2. Execute A Diagonal Bull Call Spread: Long ITM Call & Short OTM call
3. Execute A Neutral calendar spread with near term and longer term calls
5. Executing A Bull calendar spread