Buy a longer-dated put, sell a shorter-dated OTM put. Profits from time decay + a moderate drop.
๐ฏ Target
64d from today
โ๏ธ Legs
LONG PUT ยท $390 ยท Sep '26
Qty 1 ยท Premium $57.9 ยท ฮ -0.41
SHORT PUT ยท $370 ยท Aug '26
Qty 1 ยท Premium $38.65 ยท ฮ -0.37
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If LRCX hits $370 by Aug 21:
the diagonal put spread returns
+$2,409
(125.2%)
on $1,925 risked, vs
$-1,904
(-4.9%)
for 100 shares on $38,904.
Options give 25.6ร capital efficiency.
๐ Expiry
Options expire Aug 21, 2026
(64 days out).
P&L shown is the value at expiry if LRCX is at $370.
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
LRCX Price
Today
Jul 9
Jul 30
Aug 21 (exp)
$311
(-20%)
+$209
+$334
+$503
+$456
$331
(-15%)
+$188
+$338
+$583
+$856
$350
(-10%)
+$141
+$304
+$595
+$1,431
$370
(-5%)โ target
+$70
+$229
+$526
+$2,216
$381
(-2%)
+$21
+$171
+$453
+$1,625
$389
(0%)โ spot
-$17
+$125
+$389
+$1,255
$397
(+2%)
-$58
+$75
+$317
+$914
$408
(+5%)
-$122
-$8
+$193
+$456
$428
(+10%)
-$239
-$159
-$41
-$174
$447
(+15%)
-$363
-$321
-$291
-$659
$467
(+20%)
-$489
-$487
-$538
-$1,024
Uses LRCX's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.