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 $450 ยท Jul '26
Qty 1 ยท Premium $28.8 ยท ฮ -0.44
SHORT PUT ยท $430 ยท Jun '26
Qty 1 ยท Premium $16.2 ยท ฮ -0.33
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If ISRG hits $430 by Jun 19:
the diagonal put spread returns
+$1,500
(119.0%)
on $1,260 risked, vs
$-2,062
(-4.6%)
for 100 shares on $45,062.
Options give 25.9ร capital efficiency.
๐ Expiry
Options expire Jun 19, 2026
(67 days out).
P&L shown is the value at expiry if ISRG is at $430.
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
ISRG Price
Today
May 5
May 27
Jun 19 (exp)
$361
(-20%)
+$606
+$649
+$663
+$603
$383
(-15%)
+$560
+$644
+$733
+$680
$406
(-10%)
+$454
+$565
+$737
+$922
$430
(-5%)โ target
+$267
+$369
+$555
+$1,543
$442
(-2%)
+$157
+$241
+$393
+$852
$451
(0%)โ spot
+$65
+$130
+$242
+$400
$460
(+2%)
-$31
+$12
+$77
+$21
$473
(+5%)
-$178
-$169
-$177
-$423
$496
(+10%)
-$417
-$461
-$564
-$885
$518
(+15%)
-$631
-$710
-$854
-$1,110
$541
(+20%)
-$809
-$902
-$1,041
-$1,206
Uses ISRG's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.