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 $390 ยท Jul '26
Qty 1 ยท Premium $35.2 ยท ฮ -0.42
SHORT PUT ยท $375 ยท Jun '26
Qty 1 ยท Premium $22.0 ยท ฮ -0.36
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If SNPS hits $375 by Jun 19:
the diagonal put spread returns
+$1,558
(118.0%)
on $1,320 risked, vs
$-1,724
(-4.4%)
for 100 shares on $39,224.
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 SNPS is at $375.
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
SNPS Price
Today
May 5
May 27
Jun 19 (exp)
$314
(-20%)
+$178
+$234
+$272
+$148
$333
(-15%)
+$166
+$255
+$372
+$335
$353
(-10%)
+$118
+$227
+$411
+$713
$375
(-4%)โ target
+$21
+$129
+$328
+$1,448
$384
(-2%)
-$32
+$66
+$248
+$937
$392
(0%)โ spot
-$81
+$7
+$165
+$564
$400
(+2%)
-$133
-$59
+$70
+$237
$412
(+5%)
-$217
-$165
-$89
-$171
$431
(+10%)
-$364
-$354
-$368
-$659
$451
(+15%)
-$511
-$540
-$626
-$960
$471
(+20%)
-$650
-$710
-$840
-$1,134
Uses SNPS's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.