OK to Buy GLD Leaps +188% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 123.79%, Margin ROI = 43.02%
LEAPS are 188% more profitable than Margin.
LEAPS Premium = 13.94% of Stock Price.

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

LEAPS vs. Margin Comparison for GLD

Stock Price: $382.01
Option Symbol: GLD280121C00375000
Option Expiry: 2028-01-21
Days to Expiration: 461 days
Strike Price: $375
Option Premium: $53.27
Live Delta: 0.6601
LEAPS Leverage: 4.73x
LEAPS Breakeven: $428.27 +12.1%
LEAPS Premium: 13.9%
Additional Greeks:
Gamma: 0.0036
Theta: -0.0643
Vega: 1.5745
Rho: 2.5056
Implied Volatility: N/A
Open Interest: 2,081
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Scenario Comparison

Initial Investment: $5,327.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
96 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$573.02$16,144.31303.07%$4,870.3791.43%
25%$477.51$6,594.06123.79%$2,291.8043.02%
10%$420.21$863.9116.22%$744.6613.98%
0%$382.01$-2,956.19-55.49%$-286.77-5.38%
-10%$343.81$-3,657.19-68.65%$-1,318.20-24.75%
-25%$286.51$-3,657.19-68.65%$-2,865.34-53.79%
-50%$191.01$-3,657.19-68.65%$-5,443.90-102.19%
Stock Move: 50%
New Price: $573.02
Intrinsic Value: $19801.5
LEAPS Gain: $16,144.31
LEAPS ROI: 303.07%
Margin Gain: $4,870.37
Margin ROI: 91.43%
Stock Move: 25%
New Price: $477.51
Intrinsic Value: $10251.25
LEAPS Gain: $6,594.06
LEAPS ROI: 123.79%
Margin Gain: $2,291.80
Margin ROI: 43.02%
Stock Move: 10%
New Price: $420.21
Intrinsic Value: $4521.1
LEAPS Gain: $863.91
LEAPS ROI: 16.22%
Margin Gain: $744.66
Margin ROI: 13.98%
Stock Move: 0%
New Price: $382.01
Intrinsic Value: $701
LEAPS Gain: $-2,956.19
LEAPS ROI: -55.49%
Margin Gain: $-286.77
Margin ROI: -5.38%
Stock Move: -10%
New Price: $343.81
Intrinsic Value: $0
LEAPS Gain: $-3,657.19
LEAPS ROI: -68.65%
Margin Gain: $-1,318.20
Margin ROI: -24.75%
Stock Move: -25%
New Price: $286.51
Intrinsic Value: $0
LEAPS Gain: $-3,657.19
LEAPS ROI: -68.65%
Margin Gain: $-2,865.34
Margin ROI: -53.79%
Stock Move: -50%
New Price: $191.01
Intrinsic Value: $0
LEAPS Gain: $-3,657.19
LEAPS ROI: -68.65%
Margin Gain: $-5,443.90
Margin ROI: -102.19%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $5,327.00
Projected Stock Price (+25%): $477.51
LEAPS Gain: $6,594.06 | ROI: 123.79%
Margin Gain: $2,291.80 | ROI: 43.02%
LEAPS returned 188% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $5,327.00
Projected Stock Price (+50%): $573.02
LEAPS Gain: $16,144.31 | ROI: 303.07%
Margin Gain: $4,870.37 | ROI: 91.43%
LEAPS returned 231% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $5,327.00
Projected Stock Price (-25%): $286.51
LEAPS Gain: $-3,657.19 | ROI: -68.65%
Margin Gain: $-2,865.34 | ROI: -53.79%
LEAPS lost 28% more than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $5,327.00
Projected Stock Price (-50%): $191.01
LEAPS Gain: $-3,657.19 | ROI: -68.65%
Margin Gain: $-5,443.90 | ROI: -102.19%
LEAPS lost 33% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2028-01-21 (461 days total)
Days Remaining After 1 Year: 96 days
Option Premium: $53.27
Initial Stock Price: $382.01
Strike Price: $375.00
Projected Stock Price (+25% in 1 Year): $477.51
Price Difference (Projected - Strike): $102.51
Total Capital Used: $5,327.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $10,251.25
Time Value Remaining: $1,669.81
Total LEAPS Value: $11,921.06
Initial LEAPS Cost: $5,327.00
Total LEAPS Gain: $6,594.06
Margin Gain Components (Sell After 1 Year):
Shares Bought: 27
Total Stock Cost: $10,314.27
Borrowed Amount: $4,987.27
Interest Paid: $286.77
Total Margin Gain: $2,291.80
LEAPS vs. Margin Comparison:
LEAPS ROI: 123.79%
Margin ROI: 43.02%
LEAPS Gain: $6,594.06
Margin Gain: $2,291.80
LEAPS Gain Advantage: +$4,302.26
LEAPS returned 188% more gains than Margin.
LEAPS Risk to Reward Score
Good Risk to Reward
82/100
Base Performance Score: 80
Bonuses: 12
  • +5 (12-18 Month Expiration)
  • +7 (ITM Strike)
Penalties: 10
  • -10 (High Leverage)

Final Risk vs Reward Score: 82/100
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.