OK to Buy PG Leaps +260% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 154.43%, Margin ROI = 42.88%
LEAPS are 260% more profitable than Margin.
LEAPS Premium = 10.89% of Stock Price.

LEAPS Premium is OK, under 40%
LEAPS outperform margin by at least 40%

LEAPS vs. Margin Comparison for PG

Stock Price: $163.51
Option Symbol: PG280121C00170000
Option Expiry: 2028-01-21
Days to Expiration: 689 days
Strike Price: $170
Option Premium: $17.8
Live Delta: 0.5848
LEAPS Leverage: 5.37x
LEAPS Breakeven: $187.8 +14.9%
LEAPS Premium: 10.9%
Additional Greeks:
Gamma: 0.0102
Theta: -0.0178
Vega: 0.8765
Rho: 1.4877
Implied Volatility: N/A
Open Interest: 221
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Scenario Comparison

Initial Investment: $1,780.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
324 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$245.27$6,836.58384.08%$1,621.7791.11%
25%$204.39$2,748.83154.43%$763.3442.88%
10%$179.86$296.1816.64%$248.2813.95%
0%$163.51$-689.92-38.76%$-95.09-5.34%
-10%$147.16$-689.92-38.76%$-438.46-24.63%
-25%$122.63$-689.92-38.76%$-953.52-53.57%
-50%$81.76$-689.92-38.76%$-1,811.94-101.79%
Stock Move: 50%
New Price: $245.27
Intrinsic Value: $7526.5
LEAPS Gain: $6,836.58
LEAPS ROI: 384.08%
Margin Gain: $1,621.77
Margin ROI: 91.11%
Stock Move: 25%
New Price: $204.39
Intrinsic Value: $3438.75
LEAPS Gain: $2,748.83
LEAPS ROI: 154.43%
Margin Gain: $763.34
Margin ROI: 42.88%
Stock Move: 10%
New Price: $179.86
Intrinsic Value: $986.1
LEAPS Gain: $296.18
LEAPS ROI: 16.64%
Margin Gain: $248.28
Margin ROI: 13.95%
Stock Move: 0%
New Price: $163.51
Intrinsic Value: $0
LEAPS Gain: $-689.92
LEAPS ROI: -38.76%
Margin Gain: $-95.09
Margin ROI: -5.34%
Stock Move: -10%
New Price: $147.16
Intrinsic Value: $0
LEAPS Gain: $-689.92
LEAPS ROI: -38.76%
Margin Gain: $-438.46
Margin ROI: -24.63%
Stock Move: -25%
New Price: $122.63
Intrinsic Value: $0
LEAPS Gain: $-689.92
LEAPS ROI: -38.76%
Margin Gain: $-953.52
Margin ROI: -53.57%
Stock Move: -50%
New Price: $81.76
Intrinsic Value: $0
LEAPS Gain: $-689.92
LEAPS ROI: -38.76%
Margin Gain: $-1,811.94
Margin ROI: -101.79%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $1,780.00
Projected Stock Price (+25%): $204.39
LEAPS Gain: $2,748.83 | ROI: 154.43%
Margin Gain: $763.34 | ROI: 42.88%
LEAPS returned 260% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $1,780.00
Projected Stock Price (+50%): $245.27
LEAPS Gain: $6,836.58 | ROI: 384.08%
Margin Gain: $1,621.77 | ROI: 91.11%
LEAPS returned 322% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $1,780.00
Projected Stock Price (-25%): $122.63
LEAPS Gain: $-689.92 | ROI: -38.76%
Margin Gain: $-953.52 | ROI: -53.57%
LEAPS lost 28% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $1,780.00
Projected Stock Price (-50%): $81.76
LEAPS Gain: $-689.92 | ROI: -38.76%
Margin Gain: $-1,811.94 | ROI: -101.79%
LEAPS lost 62% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2028-01-21 (689 days total)
Days Remaining After 1 Year: 324 days
Option Premium: $17.80
Initial Stock Price: $163.51
Strike Price: $170.00
Projected Stock Price (+25% in 1 Year): $204.39
Price Difference (Projected - Strike): $34.39
Total Capital Used: $1,780.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $3,438.75
Time Value Remaining: $1,090.08
Total LEAPS Value: $4,528.83
Initial LEAPS Cost: $1,780.00
Total LEAPS Gain: $2,748.83

Margin Gain Components (Sell After 1 Year):
Shares Bought: 21
Total Stock Cost: $3,433.71
Borrowed Amount: $1,653.71
Interest Paid: $95.09
Total Margin Gain: $763.34

LEAPS vs. Margin Comparison:
LEAPS ROI: 154.43%
Margin ROI: 42.88%
LEAPS Gain: $2,748.83
Margin Gain: $763.34
LEAPS Gain Advantage: +$1,985.49
LEAPS returned 260% more gains than Margin.
LEAPS Risk to Reward Score
Good Risk to Reward
82/100
Base Performance Score: 80
Bonuses: 12
  • +7 (18-24 Month Expiration)
  • +5 (ATM Strike)
Penalties: 10
  • -10 (High Leverage)

Final Risk vs Reward Score: 82/100
Base Performance Score is based on how much better LEAPS perform than margin. It's calculated as (LEAPS ROI - Margin ROI) * 1.5, capped at 80.