OK to Buy GLD Leaps +166% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 115.24%, Margin ROI = 43.35%
LEAPS are 166% more profitable than Margin.
LEAPS Premium = 11.26% of Stock Price.

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

LEAPS vs. Margin Comparison for GLD

Stock Price: $447.42
Option Symbol: GLD270617C00465000
Option Expiry: 2027-06-17
Days to Expiration: 425 days
Strike Price: $465
Option Premium: $50.39
Live Delta: 0.5614
LEAPS Leverage: 4.98x
LEAPS Breakeven: $515.39 +15.2%
LEAPS Premium: 11.3%
Additional Greeks:
Gamma: 0.0031
Theta: -0.0784
Vega: 1.9055
Rho: 2.3349
Implied Volatility: N/A
Open Interest: 669
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Scenario Comparison

Initial Investment: $5,039.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
60 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$671.13$16,992.60337.22%$4,645.3892.19%
25%$559.28$5,807.10115.24%$2,184.5743.35%
10%$492.16$-904.20-17.94%$708.0814.05%
0%$447.42$-3,620.40-71.85%$-276.24-5.48%
-10%$402.68$-3,620.40-71.85%$-1,260.57-25.02%
-25%$335.57$-3,620.40-71.85%$-2,737.05-54.32%
-50%$223.71$-3,620.40-71.85%$-5,197.86-103.15%
Stock Move: 50%
New Price: $671.13
Intrinsic Value: $20613
LEAPS Gain: $16,992.60
LEAPS ROI: 337.22%
Margin Gain: $4,645.38
Margin ROI: 92.19%
Stock Move: 25%
New Price: $559.28
Intrinsic Value: $9427.5
LEAPS Gain: $5,807.10
LEAPS ROI: 115.24%
Margin Gain: $2,184.57
Margin ROI: 43.35%
Stock Move: 10%
New Price: $492.16
Intrinsic Value: $2716.2
LEAPS Gain: $-904.20
LEAPS ROI: -17.94%
Margin Gain: $708.08
Margin ROI: 14.05%
Stock Move: 0%
New Price: $447.42
Intrinsic Value: $0
LEAPS Gain: $-3,620.40
LEAPS ROI: -71.85%
Margin Gain: $-276.24
Margin ROI: -5.48%
Stock Move: -10%
New Price: $402.68
Intrinsic Value: $0
LEAPS Gain: $-3,620.40
LEAPS ROI: -71.85%
Margin Gain: $-1,260.57
Margin ROI: -25.02%
Stock Move: -25%
New Price: $335.57
Intrinsic Value: $0
LEAPS Gain: $-3,620.40
LEAPS ROI: -71.85%
Margin Gain: $-2,737.05
Margin ROI: -54.32%
Stock Move: -50%
New Price: $223.71
Intrinsic Value: $0
LEAPS Gain: $-3,620.40
LEAPS ROI: -71.85%
Margin Gain: $-5,197.86
Margin ROI: -103.15%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $5,039.00
Projected Stock Price (+25%): $559.28
LEAPS Gain: $5,807.10 | ROI: 115.24%
Margin Gain: $2,184.57 | ROI: 43.35%
LEAPS returned 166% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $5,039.00
Projected Stock Price (+50%): $671.13
LEAPS Gain: $16,992.60 | ROI: 337.22%
Margin Gain: $4,645.38 | ROI: 92.19%
LEAPS returned 266% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $5,039.00
Projected Stock Price (-25%): $335.57
LEAPS Gain: $-3,620.40 | ROI: -71.85%
Margin Gain: $-2,737.05 | ROI: -54.32%
LEAPS lost 32% more than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $5,039.00
Projected Stock Price (-50%): $223.71
LEAPS Gain: $-3,620.40 | ROI: -71.85%
Margin Gain: $-5,197.86 | ROI: -103.15%
LEAPS lost 30% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2027-06-17 (426 days total)
Days Remaining After 1 Year: 61 days
Option Premium: $50.39
Initial Stock Price: $447.42
Strike Price: $465.00
Projected Stock Price (+25% in 1 Year): $559.28
Price Difference (Projected - Strike): $94.28
Total Capital Used: $5,039.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $9,427.50
Time Value Remaining: $1,418.60
Total LEAPS Value: $10,846.10
Initial LEAPS Cost: $5,039.00
Total LEAPS Gain: $5,807.10

Margin Gain Components (Sell After 1 Year):
Shares Bought: 22
Total Stock Cost: $9,843.24
Borrowed Amount: $4,804.24
Interest Paid: $276.24
Total Margin Gain: $2,184.57

LEAPS vs. Margin Comparison:
LEAPS ROI: 115.24%
Margin ROI: 43.35%
LEAPS Gain: $5,807.10
Margin Gain: $2,184.57
LEAPS Gain Advantage: +$3,622.53
LEAPS returned 166% 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.