OK to Buy GLD Leaps +171% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 116.57%, Margin ROI = 42.94%
LEAPS are 171% more profitable than Margin.
LEAPS Premium = 9.32% of Stock Price.

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

LEAPS vs. Margin Comparison for GLD

Stock Price: $491.3
Option Symbol: GLD270319C00515000
Option Expiry: 2027-03-19
Days to Expiration: 381 days
Strike Price: $515
Option Premium: $45.77
Live Delta: 0.5381
LEAPS Leverage: 5.78x
LEAPS Breakeven: $560.77 +14.1%
LEAPS Premium: 9.3%
Additional Greeks:
Gamma: 0.0029
Theta: -0.09
Vega: 1.996
Rho: 2.2319
Implied Volatility: N/A
Open Interest: 106
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Scenario Comparison

Initial Investment: $4,577.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
16 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$736.95$17,618.00384.92%$4,176.3891.25%
25%$614.13$5,335.50116.57%$1,965.5342.94%
10%$540.43$-2,034.00-44.44%$639.0213.96%
0%$491.3$-4,577.00-100.00%$-245.32-5.36%
-10%$442.17$-4,577.00-100.00%$-1,129.66-24.68%
-25%$368.48$-4,577.00-100.00%$-2,456.17-53.66%
-50%$245.65$-4,577.00-100.00%$-4,667.02-101.97%
Stock Move: 50%
New Price: $736.95
Intrinsic Value: $22195
LEAPS Gain: $17,618.00
LEAPS ROI: 384.92%
Margin Gain: $4,176.38
Margin ROI: 91.25%
Stock Move: 25%
New Price: $614.13
Intrinsic Value: $9912.5
LEAPS Gain: $5,335.50
LEAPS ROI: 116.57%
Margin Gain: $1,965.53
Margin ROI: 42.94%
Stock Move: 10%
New Price: $540.43
Intrinsic Value: $2543
LEAPS Gain: $-2,034.00
LEAPS ROI: -44.44%
Margin Gain: $639.02
Margin ROI: 13.96%
Stock Move: 0%
New Price: $491.3
Intrinsic Value: $0
LEAPS Gain: $-4,577.00
LEAPS ROI: -100.00%
Margin Gain: $-245.32
Margin ROI: -5.36%
Stock Move: -10%
New Price: $442.17
Intrinsic Value: $0
LEAPS Gain: $-4,577.00
LEAPS ROI: -100.00%
Margin Gain: $-1,129.66
Margin ROI: -24.68%
Stock Move: -25%
New Price: $368.48
Intrinsic Value: $0
LEAPS Gain: $-4,577.00
LEAPS ROI: -100.00%
Margin Gain: $-2,456.17
Margin ROI: -53.66%
Stock Move: -50%
New Price: $245.65
Intrinsic Value: $0
LEAPS Gain: $-4,577.00
LEAPS ROI: -100.00%
Margin Gain: $-4,667.02
Margin ROI: -101.97%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $4,577.00
Projected Stock Price (+25%): $614.13
LEAPS Gain: $5,335.50 | ROI: 116.57%
Margin Gain: $1,965.53 | ROI: 42.94%
LEAPS returned 171% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $4,577.00
Projected Stock Price (+50%): $736.95
LEAPS Gain: $17,618.00 | ROI: 384.92%
Margin Gain: $4,176.38 | ROI: 91.25%
LEAPS returned 322% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $4,577.00
Projected Stock Price (-25%): $368.48
LEAPS Gain: $-4,577.00 | ROI: -100%
Margin Gain: $-2,456.17 | ROI: -53.66%
LEAPS lost 86% more than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $4,577.00
Projected Stock Price (-50%): $245.65
LEAPS Gain: $-4,577.00 | ROI: -100%
Margin Gain: $-4,667.02 | ROI: -101.97%
LEAPS lost 2% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2027-03-19 (381 days total)
Days Remaining After 1 Year: 16 days
Option Premium: $45.77
Initial Stock Price: $491.30
Strike Price: $515.00
Projected Stock Price (+25% in 1 Year): $614.13
Price Difference (Projected - Strike): $99.13
Total Capital Used: $4,577.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $9,912.50
Time Value Remaining: $0.00
Total LEAPS Value: $9,912.50
Initial LEAPS Cost: $4,577.00
Total LEAPS Gain: $5,335.50

Margin Gain Components (Sell After 1 Year):
Shares Bought: 18
Total Stock Cost: $8,843.40
Borrowed Amount: $4,266.40
Interest Paid: $245.32
Total Margin Gain: $1,965.53

LEAPS vs. Margin Comparison:
LEAPS ROI: 116.57%
Margin ROI: 42.94%
LEAPS Gain: $5,335.50
Margin Gain: $1,965.53
LEAPS Gain Advantage: +$3,369.97
LEAPS returned 171% more gains than Margin.
LEAPS Risk to Reward Score
Good Risk to Reward
80/100
Base Performance Score: 80
Bonuses: 10
  • +5 (12-18 Month Expiration)
  • +5 (ATM Strike)
Penalties: 10
  • -10 (High Leverage)

Final Risk vs Reward Score: 80/100
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.