OK to Buy GLD Leaps +201% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 133.17%, Margin ROI = 44.23%
LEAPS are 201% more profitable than Margin.
LEAPS Premium = 10.01% of Stock Price.

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

LEAPS vs. Margin Comparison for GLD

Stock Price: $368.41
Option Symbol: GLD270917C00385000
Option Expiry: 2027-09-17
Days to Expiration: 426 days
Strike Price: $385
Option Premium: $36.86
Live Delta: 0.5542
LEAPS Leverage: 5.54x
LEAPS Breakeven: $421.86 +14.5%
LEAPS Premium: 10%
Additional Greeks:
Gamma: 0.0042
Theta: -0.0619
Vega: 1.575
Rho: 1.9418
Implied Volatility: N/A
Open Interest: 16
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Scenario Comparison

Initial Investment: $3,686.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
61 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$552.62$14,119.07383.05%$3,472.3794.20%
25%$460.51$4,908.82133.17%$1,630.3244.23%
10%$405.25$-617.33-16.75%$525.0914.25%
0%$368.41$-2,642.43-71.69%$-211.73-5.74%
-10%$331.57$-2,642.43-71.69%$-948.55-25.73%
-25%$276.31$-2,642.43-71.69%$-2,053.78-55.72%
-50%$184.21$-2,642.43-71.69%$-3,895.83-105.69%
Stock Move: 50%
New Price: $552.62
Intrinsic Value: $16761.5
LEAPS Gain: $14,119.07
LEAPS ROI: 383.05%
Margin Gain: $3,472.37
Margin ROI: 94.20%
Stock Move: 25%
New Price: $460.51
Intrinsic Value: $7551.25
LEAPS Gain: $4,908.82
LEAPS ROI: 133.17%
Margin Gain: $1,630.32
Margin ROI: 44.23%
Stock Move: 10%
New Price: $405.25
Intrinsic Value: $2025.1
LEAPS Gain: $-617.33
LEAPS ROI: -16.75%
Margin Gain: $525.09
Margin ROI: 14.25%
Stock Move: 0%
New Price: $368.41
Intrinsic Value: $0
LEAPS Gain: $-2,642.43
LEAPS ROI: -71.69%
Margin Gain: $-211.73
Margin ROI: -5.74%
Stock Move: -10%
New Price: $331.57
Intrinsic Value: $0
LEAPS Gain: $-2,642.43
LEAPS ROI: -71.69%
Margin Gain: $-948.55
Margin ROI: -25.73%
Stock Move: -25%
New Price: $276.31
Intrinsic Value: $0
LEAPS Gain: $-2,642.43
LEAPS ROI: -71.69%
Margin Gain: $-2,053.78
Margin ROI: -55.72%
Stock Move: -50%
New Price: $184.21
Intrinsic Value: $0
LEAPS Gain: $-2,642.43
LEAPS ROI: -71.69%
Margin Gain: $-3,895.83
Margin ROI: -105.69%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $3,686.00
Projected Stock Price (+25%): $460.51
LEAPS Gain: $4,908.82 | ROI: 133.17%
Margin Gain: $1,630.32 | ROI: 44.23%
LEAPS returned 201% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $3,686.00
Projected Stock Price (+50%): $552.62
LEAPS Gain: $14,119.07 | ROI: 383.05%
Margin Gain: $3,472.37 | ROI: 94.2%
LEAPS returned 307% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $3,686.00
Projected Stock Price (-25%): $276.31
LEAPS Gain: $-2,642.43 | ROI: -71.69%
Margin Gain: $-2,053.78 | ROI: -55.72%
LEAPS lost 29% more than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $3,686.00
Projected Stock Price (-50%): $184.21
LEAPS Gain: $-2,642.43 | ROI: -71.69%
Margin Gain: $-3,895.83 | ROI: -105.69%
LEAPS lost 32% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2027-09-17 (426 days total)
Days Remaining After 1 Year: 61 days
Option Premium: $36.86
Initial Stock Price: $368.41
Strike Price: $385.00
Projected Stock Price (+25% in 1 Year): $460.51
Price Difference (Projected - Strike): $75.51
Total Capital Used: $3,686.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $7,551.25
Time Value Remaining: $1,043.57
Total LEAPS Value: $8,594.82
Initial LEAPS Cost: $3,686.00
Total LEAPS Gain: $4,908.82

Margin Gain Components (Sell After 1 Year):
Shares Bought: 20
Total Stock Cost: $7,368.20
Borrowed Amount: $3,682.20
Interest Paid: $211.73
Total Margin Gain: $1,630.32

LEAPS vs. Margin Comparison:
LEAPS ROI: 133.17%
Margin ROI: 44.23%
LEAPS Gain: $4,908.82
Margin Gain: $1,630.32
LEAPS Gain Advantage: +$3,278.50
LEAPS returned 201% 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.