OK to Buy GLD Leaps +168% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 117.07%, Margin ROI = 43.66%
LEAPS are 168% more profitable than Margin.
LEAPS Premium = 9.65% of Stock Price.

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

LEAPS vs. Margin Comparison for GLD

Stock Price: $408.42
Option Symbol: GLD270917C00425000
Option Expiry: 2027-09-17
Days to Expiration: 380 days
Strike Price: $425
Option Premium: $39.4
Live Delta: 0.5531
LEAPS Leverage: 5.73x
LEAPS Breakeven: $464.4 +13.7%
LEAPS Premium: 9.6%
Additional Greeks:
Gamma: 0.0039
Theta: -0.0727
Vega: 1.6499
Rho: 1.937
Implied Volatility: N/A
Open Interest: 156
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Scenario Comparison

Initial Investment: $3,940.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
15 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$612.63$14,823.00376.22%$3,660.3492.90%
25%$510.53$4,612.50117.07%$1,720.3543.66%
10%$449.26$-1,513.80-38.42%$556.3514.12%
0%$408.42$-3,940.00-100.00%$-219.65-5.57%
-10%$367.58$-3,940.00-100.00%$-995.65-25.27%
-25%$306.32$-3,940.00-100.00%$-2,159.64-54.81%
-50%$204.21$-3,940.00-100.00%$-4,099.64-104.05%
Stock Move: 50%
New Price: $612.63
Intrinsic Value: $18763
LEAPS Gain: $14,823.00
LEAPS ROI: 376.22%
Margin Gain: $3,660.34
Margin ROI: 92.90%
Stock Move: 25%
New Price: $510.53
Intrinsic Value: $8552.5
LEAPS Gain: $4,612.50
LEAPS ROI: 117.07%
Margin Gain: $1,720.35
Margin ROI: 43.66%
Stock Move: 10%
New Price: $449.26
Intrinsic Value: $2426.2
LEAPS Gain: $-1,513.80
LEAPS ROI: -38.42%
Margin Gain: $556.35
Margin ROI: 14.12%
Stock Move: 0%
New Price: $408.42
Intrinsic Value: $0
LEAPS Gain: $-3,940.00
LEAPS ROI: -100.00%
Margin Gain: $-219.65
Margin ROI: -5.57%
Stock Move: -10%
New Price: $367.58
Intrinsic Value: $0
LEAPS Gain: $-3,940.00
LEAPS ROI: -100.00%
Margin Gain: $-995.65
Margin ROI: -25.27%
Stock Move: -25%
New Price: $306.32
Intrinsic Value: $0
LEAPS Gain: $-3,940.00
LEAPS ROI: -100.00%
Margin Gain: $-2,159.64
Margin ROI: -54.81%
Stock Move: -50%
New Price: $204.21
Intrinsic Value: $0
LEAPS Gain: $-3,940.00
LEAPS ROI: -100.00%
Margin Gain: $-4,099.64
Margin ROI: -104.05%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $3,940.00
Projected Stock Price (+25%): $510.53
LEAPS Gain: $4,612.50 | ROI: 117.07%
Margin Gain: $1,720.35 | ROI: 43.66%
LEAPS returned 168% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $3,940.00
Projected Stock Price (+50%): $612.63
LEAPS Gain: $14,823.00 | ROI: 376.22%
Margin Gain: $3,660.34 | ROI: 92.9%
LEAPS returned 305% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $3,940.00
Projected Stock Price (-25%): $306.32
LEAPS Gain: $-3,940.00 | ROI: -100%
Margin Gain: $-2,159.64 | ROI: -54.81%
LEAPS lost 82% more than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $3,940.00
Projected Stock Price (-50%): $204.21
LEAPS Gain: $-3,940.00 | ROI: -100%
Margin Gain: $-4,099.64 | ROI: -104.05%
LEAPS lost 4% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2027-09-17 (381 days total)
Days Remaining After 1 Year: 16 days
Option Premium: $39.40
Initial Stock Price: $408.42
Strike Price: $425.00
Projected Stock Price (+25% in 1 Year): $510.53
Price Difference (Projected - Strike): $85.53
Total Capital Used: $3,940.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $8,552.50
Time Value Remaining: $0.00
Total LEAPS Value: $8,552.50
Initial LEAPS Cost: $3,940.00
Total LEAPS Gain: $4,612.50
Margin Gain Components (Sell After 1 Year):
Shares Bought: 19
Total Stock Cost: $7,759.98
Borrowed Amount: $3,819.98
Interest Paid: $219.65
Total Margin Gain: $1,720.35
LEAPS vs. Margin Comparison:
LEAPS ROI: 117.07%
Margin ROI: 43.66%
LEAPS Gain: $4,612.50
Margin Gain: $1,720.35
LEAPS Gain Advantage: +$2,892.15
LEAPS returned 168% 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.