OK to Buy GLD Leaps +228% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 144.46%, Margin ROI = 44.1%
LEAPS are 228% more profitable than Margin.
LEAPS Premium = 10.54% of Stock Price.

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

LEAPS vs. Margin Comparison for GLD

Stock Price: $423.15
Option Symbol: GLD270617C00440000
Option Expiry: 2027-06-17
Days to Expiration: 516 days
Strike Price: $440
Option Premium: $44.61
Live Delta: 0.5649
LEAPS Leverage: 5.36x
LEAPS Breakeven: $484.61 +14.5%
LEAPS Premium: 10.5%
Additional Greeks:
Gamma: 0.0036
Theta: -0.0595
Vega: 1.9825
Rho: 2.7461
Implied Volatility: N/A
Open Interest: 2,749
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Scenario Comparison

Initial Investment: $4,461.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
151 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$634.73$17,023.16381.60%$4,188.6393.89%
25%$528.94$6,444.41144.46%$1,967.0944.10%
10%$465.47$97.162.18%$634.1714.22%
0%$423.15$-2,449.34-54.91%$-254.45-5.70%
-10%$380.84$-2,449.34-54.91%$-1,143.06-25.62%
-25%$317.36$-2,449.34-54.91%$-2,475.98-55.50%
-50%$211.58$-2,449.34-54.91%$-4,697.52-105.30%
Stock Move: 50%
New Price: $634.73
Intrinsic Value: $19472.5
LEAPS Gain: $17,023.16
LEAPS ROI: 381.60%
Margin Gain: $4,188.63
Margin ROI: 93.89%
Stock Move: 25%
New Price: $528.94
Intrinsic Value: $8893.75
LEAPS Gain: $6,444.41
LEAPS ROI: 144.46%
Margin Gain: $1,967.09
Margin ROI: 44.10%
Stock Move: 10%
New Price: $465.47
Intrinsic Value: $2546.5
LEAPS Gain: $97.16
LEAPS ROI: 2.18%
Margin Gain: $634.17
Margin ROI: 14.22%
Stock Move: 0%
New Price: $423.15
Intrinsic Value: $0
LEAPS Gain: $-2,449.34
LEAPS ROI: -54.91%
Margin Gain: $-254.45
Margin ROI: -5.70%
Stock Move: -10%
New Price: $380.84
Intrinsic Value: $0
LEAPS Gain: $-2,449.34
LEAPS ROI: -54.91%
Margin Gain: $-1,143.06
Margin ROI: -25.62%
Stock Move: -25%
New Price: $317.36
Intrinsic Value: $0
LEAPS Gain: $-2,449.34
LEAPS ROI: -54.91%
Margin Gain: $-2,475.98
Margin ROI: -55.50%
Stock Move: -50%
New Price: $211.58
Intrinsic Value: $0
LEAPS Gain: $-2,449.34
LEAPS ROI: -54.91%
Margin Gain: $-4,697.52
Margin ROI: -105.30%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $4,461.00
Projected Stock Price (+25%): $528.94
LEAPS Gain: $6,444.41 | ROI: 144.46%
Margin Gain: $1,967.09 | ROI: 44.1%
LEAPS returned 228% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $4,461.00
Projected Stock Price (+50%): $634.73
LEAPS Gain: $17,023.16 | ROI: 381.6%
Margin Gain: $4,188.63 | ROI: 93.89%
LEAPS returned 306% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $4,461.00
Projected Stock Price (-25%): $317.36
LEAPS Gain: $-2,449.34 | ROI: -54.91%
Margin Gain: $-2,475.98 | ROI: -55.5%
LEAPS lost 1% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $4,461.00
Projected Stock Price (-50%): $211.58
LEAPS Gain: $-2,449.34 | ROI: -54.91%
Margin Gain: $-4,697.52 | ROI: -105.3%
LEAPS lost 48% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2027-06-17 (517 days total)
Days Remaining After 1 Year: 152 days
Option Premium: $44.61
Initial Stock Price: $423.15
Strike Price: $440.00
Projected Stock Price (+25% in 1 Year): $528.94
Price Difference (Projected - Strike): $88.94
Total Capital Used: $4,461.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $8,893.75
Time Value Remaining: $2,011.66
Total LEAPS Value: $10,905.41
Initial LEAPS Cost: $4,461.00
Total LEAPS Gain: $6,444.41

Margin Gain Components (Sell After 1 Year):
Shares Bought: 21
Total Stock Cost: $8,886.15
Borrowed Amount: $4,425.15
Interest Paid: $254.45
Total Margin Gain: $1,967.09

LEAPS vs. Margin Comparison:
LEAPS ROI: 144.46%
Margin ROI: 44.10%
LEAPS Gain: $6,444.41
Margin Gain: $1,967.09
LEAPS Gain Advantage: +$4,477.32
LEAPS returned 228% 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.