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 $23.75 ยท ฮ -0.44
SHORT PUT ยท $340 ยท Sep '26
Qty 1 ยท Premium $13.51 ยท ฮ -0.34
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If GOOGL hits $340 by Sep 18:
the diagonal put spread returns
+$1,084
(105.9%)
on $1,024 risked, vs
$-1,718
(-4.8%)
for 100 shares on $35,718.
Options give 22.1ร capital efficiency.
๐ Expiry
Options expire Sep 18, 2026
(68 days out).
P&L shown is the value at expiry if GOOGL is at $340.
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
GOOGL Price
Today
Aug 3
Aug 26
Sep 18 (exp)
$286
(-20%)
+$385
+$422
+$437
+$377
$304
(-15%)
+$353
+$421
+$501
+$457
$321
(-10%)
+$277
+$364
+$510
+$685
$340
(-5%)โ target
+$151
+$231
+$386
+$1,197
$350
(-2%)
+$65
+$131
+$258
+$619
$357
(0%)โ spot
-$1
+$52
+$147
+$275
$364
(+2%)
-$69
-$33
+$25
-$14
$375
(+5%)
-$175
-$164
-$163
-$354
$393
(+10%)
-$350
-$378
-$456
-$713
$411
(+15%)
-$509
-$566
-$681
-$894
$429
(+20%)
-$645
-$715
-$832
-$975
Uses GOOGL's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.