Buy a longer-dated put, sell a shorter-dated OTM put. Profits from time decay + a moderate drop.
๐ฏ Target
63d from today
โ๏ธ Legs
LONG PUT ยท $620 ยท Sep '26
Qty 1 ยท Premium $88.3 ยท ฮ -0.42
SHORT PUT ยท $590 ยท Aug '26
Qty 1 ยท Premium $59.45 ยท ฮ -0.37
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If AMAT hits $590 by Aug 21:
the diagonal put spread returns
+$3,660
(126.9%)
on $2,885 risked, vs
$-2,711
(-4.4%)
for 100 shares on $61,711.
Options give 28.8ร capital efficiency.
๐ Expiry
Options expire Aug 21, 2026
(63 days out).
P&L shown is the value at expiry if AMAT is at $590.
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
AMAT Price
Today
Jul 10
Jul 31
Aug 21 (exp)
$494
(-20%)
+$321
+$501
+$727
+$572
$525
(-15%)
+$296
+$522
+$882
+$1,148
$555
(-10%)
+$229
+$479
+$928
+$2,004
$590
(-4%)โ target
+$107
+$354
+$821
+$3,339
$605
(-2%)
+$41
+$277
+$724
+$2,556
$617
(0%)โ spot
-$19
+$204
+$623
+$1,959
$629
(+2%)
-$84
+$123
+$505
+$1,411
$648
(+5%)
-$188
-$10
+$302
+$680
$679
(+10%)
-$377
-$257
-$83
-$315
$710
(+15%)
-$578
-$521
-$492
-$1,069
$741
(+20%)
-$783
-$790
-$894
-$1,625
Uses AMAT's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.