Trading Double Diagonals in 2019 By Dan Sheridan – Sheridan Options Mentoring

A Review of Trading Double Diagonals in 2019 by Dan Sheridan

Options trading is often seen as a maze—full of opportunities but equally packed with risks that can overwhelm unprepared traders. Among the advanced strategies available, the double diagonal spread holds a special place for its balance of risk and reward. In 2019, veteran trader Dan Sheridan introduced his course Trading Double Diagonals in 2019, offering traders a detailed roadmap to master this sophisticated approach. The program goes beyond theory, focusing on practical applications, risk control, and the role of implied volatility, equipping participants with skills that can elevate their trading performance.

The Core of Double Diagonal Spreads

At its foundation, a double diagonal spread blends features of both calendar spreads and diagonal spreads. This involves simultaneously selling and buying options at varying strike prices and expiration dates. Think of it as a bridge connecting two timelines—each option expiry acting as one side. When structured correctly, it enables traders to take advantage of price movements and implied volatility shifts with controlled risk.

Key Components:

• Long Options: Purchased contracts are usually further out-of-the-money with longer expiries.

• Short Options: Sold positions are nearer the money and expire sooner.

• Capital Efficiency: By combining positions, the strategy reduces upfront capital while offering flexible risk-reward outcomes.

For traders, understanding this layered setup is vital. It allows them to interpret the profit/loss zones and strategically respond to volatility.

Why Implied Volatility Matters

A major theme in Sheridan’s teaching is implied volatility (IV). Often compared to a weather forecast for traders, IV signals the likelihood of market movement and directly impacts option pricing.

Important Takeaways on IV:

• Market Mood: Elevated IV reflects uncertainty, while low IV suggests stability.

• Profit Potential: As IV rises or drops, option premiums change, affecting trade profitability.

• Timing Edge: Entering or exiting trades in sync with IV shifts can improve consistency.

Sheridan trains traders to use IV as a guiding metric, ensuring that trades are placed under the most favorable conditions.

Course Format and Teaching Style

The course is structured for accessibility, making it useful for both new traders and experienced investors looking to refine advanced techniques. Sheridan employs a mix of video tutorials, chart-based explanations, and real case studies, ensuring concepts are practical and easy to grasp.

Course Highlights:

• Step-by-step instructions for setting up double diagonal trades.

• Tools and methods for technical and volatility analysis.

• Real examples of trades in varying market environments.

This layered teaching approach helps participants turn complex strategies into workable trading routines.

Reading Market Conditions for Double Diagonals

Sheridan emphasizes that the success of double diagonals depends on timing and context. Traders must evaluate both macroeconomic and technical factors before execution.

Market Factors to Watch:

• Volatility patterns to gauge ideal entry points.

• Economic reports such as interest rates or employment data influencing market sentiment.

• Technical signals like RSI or moving averages to fine-tune timing.

By staying adaptive, traders can decide whether the double diagonal is the right tool for current market winds—much like a sailor adjusting sails to shifting weather.

Practical Applications and Case Studies

One of the most valuable aspects of Sheridan’s course is its real-world case studies, allowing learners to see theory in action.

Examples from the program:

• Low-volatility scenarios showcasing setups for quiet markets.

• Market shocks analyzing how unexpected news impacts double diagonals.

• Risk adjustment methods for reducing exposure during adverse moves.

These scenarios help traders transition from theory to confident application.

Final Thoughts: Is This Course Worth It?

Dan Sheridan’s Trading Double Diagonals in 2019 is more than just another options course—it’s a comprehensive guide to mastering one of the most dynamic strategies in the options playbook. By breaking down the mechanics, highlighting implied volatility, and reinforcing lessons with real examples, the course empowers traders to approach the markets with discipline and clarity.

In a trading world where adaptability and continuous learning are non-negotiable, Sheridan provides the knowledge and mindset needed to stay ahead. For traders serious about adding the double diagonal strategy to their arsenal, this course represents both an educational investment and a step toward trading mastery.