A call diagonal calendar spread that is designed to profit when the underlying breaks out in either direction. The profit potential would be maximized when the underlying breaks out to the downside so that the extrinsic values of the long-term calls would be wiped out altogether. The risk/reward balance under this strategy is typically in the favor of profit over loss. However, it requires, as a result, putting up a margin amount so the position is established.

This strategy involves buying short-term out-of-the-money call options and selling long-term at-the-money calls options.