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 $1740 ยท Jul '26
Qty 1 ยท Premium $164.2 ยท ฮ -0.43
SHORT PUT ยท $1650 ยท Jun '26
Qty 1 ยท Premium $96.96 ยท ฮ -0.35
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If KLAC hits $1650 by Jun 19:
the diagonal put spread returns
+$7,280
(108.3%)
on $6,724 risked, vs
$-8,728
(-5.0%)
for 100 shares on $173,728.
Options give 21.7ร capital efficiency.
๐ Expiry
Options expire Jun 19, 2026
(67 days out).
P&L shown is the value at expiry if KLAC is at $1650.
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
KLAC Price
Today
May 5
May 27
Jun 19 (exp)
$1390
(-20%)
+$1,887
+$2,233
+$2,555
+$2,143
$1477
(-15%)
+$1,658
+$2,139
+$2,814
+$2,957
$1564
(-10%)
+$1,257
+$1,799
+$2,722
+$4,576
$1650
(-5%)โ target
+$696
+$1,200
+$2,130
+$7,280
$1703
(-2%)
+$290
+$725
+$1,529
+$4,278
$1737
(0%)โ spot
+$0
+$375
+$1,052
+$2,552
$1772
(+2%)
-$303
+$2
+$525
+$1,028
$1824
(+5%)
-$774
-$585
-$320
-$897
$1911
(+10%)
-$1,578
-$1,594
-$1,756
-$3,255
$1998
(+15%)
-$2,366
-$2,568
-$3,067
-$4,761
$2085
(+20%)
-$3,105
-$3,452
-$4,150
-$5,665
Uses KLAC's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.