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 $350 ยท Jul '26
Qty 1 ยท Premium $32.57 ยท ฮ -0.42
SHORT PUT ยท $335 ยท Jun '26
Qty 1 ยท Premium $20.44 ยท ฮ -0.35
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If IDCC hits $335 by Jun 19:
the diagonal put spread returns
+$1,455
(119.9%)
on $1,213 risked, vs
$-1,727
(-4.9%)
for 100 shares on $35,227.
Options give 24.5ร capital efficiency.
๐ Expiry
Options expire Jun 19, 2026
(67 days out).
P&L shown is the value at expiry if IDCC is at $335.
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
IDCC Price
Today
May 5
May 27
Jun 19 (exp)
$282
(-20%)
+$274
+$336
+$391
+$286
$299
(-15%)
+$251
+$342
+$469
+$478
$317
(-10%)
+$197
+$302
+$483
+$845
$335
(-5%)โ target
+$109
+$211
+$398
+$1,455
$345
(-2%)
+$47
+$138
+$305
+$899
$352
(0%)โ spot
+$0
+$80
+$225
+$566
$359
(+2%)
-$50
+$18
+$135
+$272
$370
(+5%)
-$128
-$81
-$13
-$97
$388
(+10%)
-$265
-$256
-$270
-$548
$405
(+15%)
-$402
-$429
-$510
-$835
$423
(+20%)
-$532
-$589
-$712
-$1,008
Uses IDCC's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.