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 $355 ยท Oct '26
Qty 1 ยท Premium $24.25 ยท ฮ -0.45
SHORT PUT ยท $335 ยท Sep '26
Qty 1 ยท Premium $12.1 ยท ฮ -0.31
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If GOOG hits $335 by Sep 18:
the diagonal put spread returns
+$1,237
(101.8%)
on $1,215 risked, vs
$-2,003
(-5.6%)
for 100 shares on $35,503.
Options give 18.2ร capital efficiency.
๐ Expiry
Options expire Sep 18, 2026
(68 days out).
P&L shown is the value at expiry if GOOG is at $335.
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
GOOG Price
Today
Aug 3
Aug 26
Sep 18 (exp)
$284
(-20%)
+$623
+$679
+$720
+$681
$302
(-15%)
+$546
+$632
+$744
+$749
$320
(-10%)
+$414
+$513
+$682
+$951
$335
(-6%)โ target
+$257
+$343
+$507
+$1,323
$348
(-2%)
+$104
+$165
+$278
+$527
$355
(0%)โ spot
+$14
+$57
+$131
+$168
$362
(+2%)
-$77
-$54
-$22
-$135
$373
(+5%)
-$214
-$221
-$252
-$494
$391
(+10%)
-$433
-$483
-$592
-$878
$408
(+15%)
-$628
-$704
-$844
-$1,073
$426
(+20%)
-$789
-$876
-$1,009
-$1,161
Uses GOOG's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.