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 $370 ยท Jul '26
Qty 1 ยท Premium $33.95 ยท ฮ -0.43
SHORT PUT ยท $355 ยท Jun '26
Qty 1 ยท Premium $21.39 ยท ฮ -0.36
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If AVGO hits $355 by Jun 19:
the diagonal put spread returns
+$1,461
(116.3%)
on $1,256 risked, vs
$-1,655
(-4.5%)
for 100 shares on $37,155.
Options give 25.8ร capital efficiency.
๐ Expiry
Options expire Jun 19, 2026
(67 days out).
P&L shown is the value at expiry if AVGO is at $355.
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
AVGO Price
Today
May 5
May 27
Jun 19 (exp)
$297
(-20%)
+$236
+$294
+$337
+$222
$316
(-15%)
+$219
+$308
+$428
+$405
$334
(-10%)
+$169
+$276
+$457
+$768
$355
(-4%)โ target
+$74
+$178
+$371
+$1,457
$364
(-2%)
+$21
+$116
+$292
+$958
$372
(0%)โ spot
-$27
+$57
+$211
+$601
$379
(+2%)
-$78
-$6
+$119
+$288
$390
(+5%)
-$159
-$109
-$34
-$106
$409
(+10%)
-$301
-$290
-$302
-$582
$427
(+15%)
-$443
-$470
-$552
-$881
$446
(+20%)
-$579
-$636
-$762
-$1,057
Uses AVGO's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.