OK to Buy GLD Leaps +291% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 172.15%, Margin ROI = 44.08%
LEAPS are 291% more profitable than Margin.
LEAPS Premium = 8.54% of Stock Price.

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

LEAPS vs. Margin Comparison for GLD

Stock Price: $374.85
Option Symbol: GLD270115C00390000
Option Expiry: 2027-01-15
Days to Expiration: 419 days
Strike Price: $390
Option Premium: $32
Live Delta: 0.5445
LEAPS Leverage: 6.38x
LEAPS Breakeven: $422 +12.6%
LEAPS Premium: 8.5%
Additional Greeks:
Gamma: 0.0048
Theta: -0.0555
Vega: 1.5942
Rho: 1.9668
Implied Volatility: N/A
Open Interest: 3,560
Scroll down to Unlock the Full Report

Scenario Comparison

Initial Investment: $3,200.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
54 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$562.28$14,880.11465.00%$3,003.8193.87%
25%$468.56$5,508.86172.15%$1,410.7044.08%
10%$412.34$-113.89-3.56%$454.8314.21%
0%$374.85$-2,347.39-73.36%$-182.42-5.70%
-10%$337.37$-2,347.39-73.36%$-819.66-25.61%
-25%$281.14$-2,347.39-73.36%$-1,775.53-55.49%
-50%$187.43$-2,347.39-73.36%$-3,368.64-105.27%
Stock Move: 50%
New Price: $562.28
Intrinsic Value: $17227.5
LEAPS Gain: $14,880.11
LEAPS ROI: 465.00%
Margin Gain: $3,003.81
Margin ROI: 93.87%
Stock Move: 25%
New Price: $468.56
Intrinsic Value: $7856.25
LEAPS Gain: $5,508.86
LEAPS ROI: 172.15%
Margin Gain: $1,410.70
Margin ROI: 44.08%
Stock Move: 10%
New Price: $412.34
Intrinsic Value: $2233.5
LEAPS Gain: $-113.89
LEAPS ROI: -3.56%
Margin Gain: $454.83
Margin ROI: 14.21%
Stock Move: 0%
New Price: $374.85
Intrinsic Value: $0
LEAPS Gain: $-2,347.39
LEAPS ROI: -73.36%
Margin Gain: $-182.42
Margin ROI: -5.70%
Stock Move: -10%
New Price: $337.37
Intrinsic Value: $0
LEAPS Gain: $-2,347.39
LEAPS ROI: -73.36%
Margin Gain: $-819.66
Margin ROI: -25.61%
Stock Move: -25%
New Price: $281.14
Intrinsic Value: $0
LEAPS Gain: $-2,347.39
LEAPS ROI: -73.36%
Margin Gain: $-1,775.53
Margin ROI: -55.49%
Stock Move: -50%
New Price: $187.43
Intrinsic Value: $0
LEAPS Gain: $-2,347.39
LEAPS ROI: -73.36%
Margin Gain: $-3,368.64
Margin ROI: -105.27%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $3,200.00
Projected Stock Price (+25%): $468.56
LEAPS Gain: $5,508.86 | ROI: 172.15%
Margin Gain: $1,410.70 | ROI: 44.08%
LEAPS returned 291% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $3,200.00
Projected Stock Price (+50%): $562.28
LEAPS Gain: $14,880.11 | ROI: 465%
Margin Gain: $3,003.81 | ROI: 93.87%
LEAPS returned 395% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $3,200.00
Projected Stock Price (-25%): $281.14
LEAPS Gain: $-2,347.39 | ROI: -73.36%
Margin Gain: $-1,775.53 | ROI: -55.49%
LEAPS lost 32% more than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $3,200.00
Projected Stock Price (-50%): $187.43
LEAPS Gain: $-2,347.39 | ROI: -73.36%
Margin Gain: $-3,368.64 | ROI: -105.27%
LEAPS lost 30% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2027-01-15 (420 days total)
Days Remaining After 1 Year: 55 days
Option Premium: $32.00
Initial Stock Price: $374.85
Strike Price: $390.00
Projected Stock Price (+25% in 1 Year): $468.56
Price Difference (Projected - Strike): $78.56
Total Capital Used: $3,200.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $7,856.25
Time Value Remaining: $852.61
Total LEAPS Value: $8,708.86
Initial LEAPS Cost: $3,200.00
Total LEAPS Gain: $5,508.86
Margin Gain Components (Sell After 1 Year):
Shares Bought: 17
Total Stock Cost: $6,372.45
Borrowed Amount: $3,172.45
Interest Paid: $182.42
Total Margin Gain: $1,410.70
LEAPS vs. Margin Comparison:
LEAPS ROI: 172.15%
Margin ROI: 44.08%
LEAPS Gain: $5,508.86
Margin Gain: $1,410.70
LEAPS Gain Advantage: +$4,098.16
LEAPS returned 291% 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.