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 $265 ยท Jul '26
Qty 1 ยท Premium $32.21 ยท ฮ -0.43
SHORT PUT ยท $250 ยท Jun '26
Qty 1 ยท Premium $21.53 ยท ฮ -0.36
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If LRCX hits $250 by Jun 19:
the diagonal put spread returns
+$1,487
(139.2%)
on $1,068 risked, vs
$-1,366
(-5.2%)
for 100 shares on $26,366.
Options give 26.8ร capital efficiency.
๐ Expiry
Options expire Jun 19, 2026
(67 days out).
P&L shown is the value at expiry if LRCX is at $250.
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
LRCX Price
Today
May 5
May 27
Jun 19 (exp)
$211
(-20%)
+$407
+$481
+$571
+$522
$224
(-15%)
+$373
+$464
+$606
+$720
$237
(-10%)
+$320
+$417
+$588
+$1,040
$250
(-5%)โ target
+$250
+$342
+$514
+$1,486
$258
(-2%)
+$197
+$279
+$434
+$1,021
$264
(0%)โ spot
+$160
+$235
+$374
+$762
$269
(+2%)
+$122
+$188
+$307
+$526
$277
(+5%)
+$62
+$113
+$198
+$217
$290
(+10%)
-$42
-$20
+$2
-$192
$303
(+15%)
-$149
-$155
-$193
-$488
$316
(+20%)
-$254
-$286
-$372
-$693
Uses LRCX's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.