OK to Buy GLD Leaps +159% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 113.77%, Margin ROI = 43.88%
LEAPS are 159% more profitable than Margin.
LEAPS Premium = 9.59% of Stock Price.

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

LEAPS vs. Margin Comparison for GLD

Stock Price: $411.5
Option Symbol: GLD270617C00430000
Option Expiry: 2027-06-17
Days to Expiration: 379 days
Strike Price: $430
Option Premium: $39.47
Live Delta: 0.5412
LEAPS Leverage: 5.64x
LEAPS Breakeven: $469.47 +14.1%
LEAPS Premium: 9.6%
Additional Greeks:
Gamma: 0.0039
Theta: -0.0715
Vega: 1.6661
Rho: 1.9108
Implied Volatility: N/A
Open Interest: 2,065
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Scenario Comparison

Initial Investment: $3,947.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
14 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$617.25$14,778.00374.41%$3,686.6493.40%
25%$514.38$4,490.50113.77%$1,732.0143.88%
10%$452.65$-1,682.00-42.61%$559.2414.17%
0%$411.5$-3,947.00-100.00%$-222.61-5.64%
-10%$370.35$-3,947.00-100.00%$-1,004.46-25.45%
-25%$308.63$-3,947.00-100.00%$-2,177.24-55.16%
-50%$205.75$-3,947.00-100.00%$-4,131.86-104.68%
Stock Move: 50%
New Price: $617.25
Intrinsic Value: $18725
LEAPS Gain: $14,778.00
LEAPS ROI: 374.41%
Margin Gain: $3,686.64
Margin ROI: 93.40%
Stock Move: 25%
New Price: $514.38
Intrinsic Value: $8437.5
LEAPS Gain: $4,490.50
LEAPS ROI: 113.77%
Margin Gain: $1,732.01
Margin ROI: 43.88%
Stock Move: 10%
New Price: $452.65
Intrinsic Value: $2265
LEAPS Gain: $-1,682.00
LEAPS ROI: -42.61%
Margin Gain: $559.24
Margin ROI: 14.17%
Stock Move: 0%
New Price: $411.5
Intrinsic Value: $0
LEAPS Gain: $-3,947.00
LEAPS ROI: -100.00%
Margin Gain: $-222.61
Margin ROI: -5.64%
Stock Move: -10%
New Price: $370.35
Intrinsic Value: $0
LEAPS Gain: $-3,947.00
LEAPS ROI: -100.00%
Margin Gain: $-1,004.46
Margin ROI: -25.45%
Stock Move: -25%
New Price: $308.63
Intrinsic Value: $0
LEAPS Gain: $-3,947.00
LEAPS ROI: -100.00%
Margin Gain: $-2,177.24
Margin ROI: -55.16%
Stock Move: -50%
New Price: $205.75
Intrinsic Value: $0
LEAPS Gain: $-3,947.00
LEAPS ROI: -100.00%
Margin Gain: $-4,131.86
Margin ROI: -104.68%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $3,947.00
Projected Stock Price (+25%): $514.38
LEAPS Gain: $4,490.50 | ROI: 113.77%
Margin Gain: $1,732.01 | ROI: 43.88%
LEAPS returned 159% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $3,947.00
Projected Stock Price (+50%): $617.25
LEAPS Gain: $14,778.00 | ROI: 374.41%
Margin Gain: $3,686.64 | ROI: 93.4%
LEAPS returned 301% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $3,947.00
Projected Stock Price (-25%): $308.63
LEAPS Gain: $-3,947.00 | ROI: -100%
Margin Gain: $-2,177.24 | ROI: -55.16%
LEAPS lost 81% more than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $3,947.00
Projected Stock Price (-50%): $205.75
LEAPS Gain: $-3,947.00 | ROI: -100%
Margin Gain: $-4,131.86 | ROI: -104.68%
LEAPS lost 4% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2027-06-17 (379 days total)
Days Remaining After 1 Year: 14 days
Option Premium: $39.47
Initial Stock Price: $411.50
Strike Price: $430.00
Projected Stock Price (+25% in 1 Year): $514.38
Price Difference (Projected - Strike): $84.38
Total Capital Used: $3,947.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $8,437.50
Time Value Remaining: $0.00
Total LEAPS Value: $8,437.50
Initial LEAPS Cost: $3,947.00
Total LEAPS Gain: $4,490.50
Margin Gain Components (Sell After 1 Year):
Shares Bought: 19
Total Stock Cost: $7,818.50
Borrowed Amount: $3,871.50
Interest Paid: $222.61
Total Margin Gain: $1,732.01
LEAPS vs. Margin Comparison:
LEAPS ROI: 113.77%
Margin ROI: 43.88%
LEAPS Gain: $4,490.50
Margin Gain: $1,732.01
LEAPS Gain Advantage: +$2,758.49
LEAPS returned 159% 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.