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 $310 ยท Sep '26
Qty 1 ยท Premium $56.1 ยท ฮ -0.37
SHORT PUT ยท $295 ยท Aug '26
Qty 1 ยท Premium $36.08 ยท ฮ -0.36
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If MRVL hits $295 by Aug 21:
the diagonal put spread returns
+$2,156
(107.7%)
on $2,002 risked, vs
$-1,558
(-5.0%)
for 100 shares on $31,058.
Options give 21.5ร capital efficiency.
๐ Expiry
Options expire Aug 21, 2026
(64 days out).
P&L shown is the value at expiry if MRVL is at $295.
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
MRVL Price
Today
Jul 9
Jul 30
Aug 21 (exp)
$248
(-20%)
-$261
-$140
+$41
+$90
$264
(-15%)
-$266
-$126
+$112
+$497
$280
(-10%)
-$286
-$137
+$134
+$1,033
$295
(-5%)โ target
-$322
-$173
+$105
+$1,700
$304
(-2%)
-$350
-$206
+$63
+$1,231
$311
(0%)โ spot
-$371
-$232
+$26
+$947
$317
(+2%)
-$394
-$261
-$17
+$682
$326
(+5%)
-$432
-$310
-$93
+$320
$342
(+10%)
-$501
-$402
-$242
-$194
$357
(+15%)
-$576
-$505
-$409
-$608
$373
(+20%)
-$657
-$613
-$582
-$937
Uses MRVL's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.