Buy a longer-dated put, sell a shorter-dated OTM put. Profits from time decay + a moderate drop.
๐ฏ Target
67d from today
โ๏ธ Legs
LONG PUT ยท $400 ยท Jul '26
Qty 1 ยท Premium $43.0 ยท ฮ -0.43
SHORT PUT ยท $380 ยท Jun '26
Qty 1 ยท Premium $26.86 ยท ฮ -0.36
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If AMAT hits $380 by Jun 19:
the diagonal put spread returns
+$1,850
(114.6%)
on $1,614 risked, vs
$-1,949
(-4.9%)
for 100 shares on $39,949.
Options give 23.4ร capital efficiency.
๐ Expiry
Options expire Jun 19, 2026
(67 days out).
P&L shown is the value at expiry if AMAT is at $380.
Use the 30d / 60d / 90d / 180d pills to compare different expiries.
Forward Projection
Reprices legs at (target_price, target_date) via Black-Scholes. Works on existing BS service. Simplest mode โ ship first.
Historical Backtest
Uses our historical options chains to replay this exact strategy over past expirations. Needs: date picker, "rolling every N days", cumulative P&L chart.
Signal Backtest
"Run this strategy on every BUY-rated stock with score โฅ 80 for last 90d." Reuses score_backtest pipeline + strategy overlay.
Solve for Return
Inverse: user says "+50% in 90d", system solves for required price move, shows IV-implied probability. Pure math.
๐ P&L Scenarios โ what happens at different prices and dates
AMAT Price
Today
May 5
May 27
Jun 19 (exp)
$320
(-20%)
+$339
+$425
+$511
+$405
$340
(-15%)
+$297
+$413
+$580
+$634
$360
(-10%)
+$219
+$349
+$573
+$1,051
$380
(-5%)โ target
+$105
+$228
+$455
+$1,732
$392
(-2%)
+$28
+$138
+$341
+$1,090
$399
(0%)โ spot
-$30
+$68
+$245
+$697
$407
(+2%)
-$91
-$8
+$138
+$347
$419
(+5%)
-$187
-$128
-$37
-$102
$439
(+10%)
-$353
-$339
-$345
-$667
$459
(+15%)
-$519
-$548
-$637
-$1,045
$479
(+20%)
-$679
-$745
-$892
-$1,285
Uses AMAT's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.