For educational purposes, and to make a little money, we’ll attempt to leg into a far-out-of-the-money calendar spread — the September 260-May 260 put spread.  A single spread has the potential to produce a profit of as much as $4,000  between now and September, but if we play our cards right our risk could be no more than a tenth that. The goal is to leverage a fall of nearly 30% in the stock over the next five months. Let’s start by bidding 7.60 for a September 260 put (GOUUL), predicated on a rally over the next 7-10 days to 387.70, a Hidden Pivot target.  I have included a snapshot of an option calculator that shows how I arrived at a price for these puts. The 54 volatility comes from Tradestation.