Buy a longer-dated put, sell a shorter-dated OTM put. Profits from time decay + a moderate drop.
๐ฏ Target
68d from today
โ๏ธ Legs
LONG PUT ยท $365 ยท Oct '26
Qty 1 ยท Premium $20.85 ยท ฮ -0.46
SHORT PUT ยท $345 ยท Sep '26
Qty 1 ยท Premium $10.19 ยท ฮ -0.31
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If AMGN hits $345 by Sep 18:
the diagonal put spread returns
+$1,291
(121.2%)
on $1,066 risked, vs
$-1,839
(-5.1%)
for 100 shares on $36,339.
Options give 23.8ร capital efficiency.
๐ Expiry
Options expire Sep 18, 2026
(68 days out).
P&L shown is the value at expiry if AMGN is at $345.
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
AMGN Price
Today
Aug 3
Aug 26
Sep 18 (exp)
$291
(-20%)
+$771
+$808
+$825
+$811
$309
(-15%)
+$698
+$770
+$846
+$834
$327
(-10%)
+$553
+$648
+$796
+$943
$345
(-5%)โ target
+$339
+$420
+$569
+$1,274
$356
(-2%)
+$180
+$235
+$336
+$544
$363
(0%)โ spot
+$70
+$104
+$159
+$154
$371
(+2%)
-$41
-$30
-$23
-$166
$382
(+5%)
-$205
-$227
-$285
-$525
$400
(+10%)
-$455
-$517
-$637
-$865
$418
(+15%)
-$658
-$736
-$857
-$1,003
$436
(+20%)
-$807
-$881
-$974
-$1,049
Uses AMGN's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.