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 $750 ยท Jul '26
Qty 1 ยท Premium $54.53 ยท ฮ -0.44
SHORT PUT ยท $710 ยท Jun '26
Qty 1 ยท Premium $28.1 ยท ฮ -0.34
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If REGN hits $710 by Jun 19:
the diagonal put spread returns
+$2,677
(101.3%)
on $2,643 risked, vs
$-3,887
(-5.2%)
for 100 shares on $74,887.
Options give 19.5ร capital efficiency.
๐ Expiry
Options expire Jun 19, 2026
(67 days out).
P&L shown is the value at expiry if REGN is at $710.
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
REGN Price
Today
May 5
May 27
Jun 19 (exp)
$599
(-20%)
+$1,066
+$1,177
+$1,251
+$1,148
$637
(-15%)
+$933
+$1,111
+$1,328
+$1,310
$674
(-10%)
+$695
+$905
+$1,245
+$1,764
$710
(-5%)โ target
+$371
+$558
+$897
+$2,677
$734
(-2%)
+$116
+$260
+$520
+$1,227
$749
(0%)โ spot
-$55
+$54
+$242
+$464
$764
(+2%)
-$231
-$161
-$56
-$187
$786
(+5%)
-$499
-$489
-$511
-$967
$824
(+10%)
-$934
-$1,018
-$1,209
-$1,823
$861
(+15%)
-$1,328
-$1,478
-$1,753
-$2,278
$899
(+20%)
-$1,665
-$1,845
-$2,126
-$2,494
Uses REGN's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.