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 $900 ยท Jul '26
Qty 1 ยท Premium $175.34 ยท ฮ -0.4
SHORT PUT ยท $850 ยท Jun '26
Qty 1 ยท Premium $126.8 ยท ฮ -0.36
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If LITE hits $850 by Jun 19:
the diagonal put spread returns
+$7,136
(147.0%)
on $4,854 risked, vs
$-4,730
(-5.3%)
for 100 shares on $89,730.
Options give 27.7ร capital efficiency.
๐ Expiry
Options expire Jun 19, 2026
(67 days out).
P&L shown is the value at expiry if LITE is at $850.
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
LITE Price
Today
May 5
May 27
Jun 19 (exp)
$718
(-20%)
+$719
+$1,099
+$1,693
+$2,027
$763
(-15%)
+$678
+$1,104
+$1,845
+$3,231
$808
(-10%)
+$594
+$1,040
+$1,862
+$4,796
$850
(-5%)โ target
+$479
+$919
+$1,751
+$6,616
$879
(-2%)
+$381
+$804
+$1,605
+$5,132
$897
(0%)โ spot
+$314
+$722
+$1,491
+$4,299
$915
(+2%)
+$243
+$633
+$1,360
+$3,522
$942
(+5%)
+$129
+$487
+$1,135
+$2,457
$987
(+10%)
-$78
+$214
+$702
+$928
$1032
(+15%)
-$302
-$86
+$220
-$321
$1077
(+20%)
-$537
-$403
-$283
-$1,329
Uses LITE's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.