OK to Buy GLD Leaps +170% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 116.33%, Margin ROI = 43.15%
LEAPS are 170% more profitable than Margin.
LEAPS Premium = 12.35% of Stock Price.

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

LEAPS vs. Margin Comparison for GLD

Stock Price: $412.0904
Option Symbol: GLD270617C00405000
Option Expiry: 2027-06-17
Days to Expiration: 379 days
Strike Price: $405
Option Premium: $50.9
Live Delta: 0.6382
LEAPS Leverage: 5.17x
LEAPS Breakeven: $455.9 +10.6%
LEAPS Premium: 12.4%
Additional Greeks:
Gamma: 0.0037
Theta: -0.0719
Vega: 1.5757
Rho: 2.2004
Implied Volatility: N/A
Open Interest: 162
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Scenario Comparison

Initial Investment: $5,090.00
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%$618.14$16,223.56318.73%$4,669.0891.73%
25%$515.11$5,921.30116.33%$2,196.5343.15%
10%$453.3$-260.06-5.11%$713.0114.01%
0%$412.09$-4,380.96-86.07%$-276.01-5.42%
-10%$370.88$-5,090.00-100.00%$-1,265.03-24.85%
-25%$309.07$-5,090.00-100.00%$-2,748.55-54.00%
-50%$206.05$-5,090.00-100.00%$-5,221.09-102.58%
Stock Move: 50%
New Price: $618.14
Intrinsic Value: $21313.56
LEAPS Gain: $16,223.56
LEAPS ROI: 318.73%
Margin Gain: $4,669.08
Margin ROI: 91.73%
Stock Move: 25%
New Price: $515.11
Intrinsic Value: $11011.3
LEAPS Gain: $5,921.30
LEAPS ROI: 116.33%
Margin Gain: $2,196.53
Margin ROI: 43.15%
Stock Move: 10%
New Price: $453.3
Intrinsic Value: $4829.94
LEAPS Gain: $-260.06
LEAPS ROI: -5.11%
Margin Gain: $713.01
Margin ROI: 14.01%
Stock Move: 0%
New Price: $412.09
Intrinsic Value: $709.04
LEAPS Gain: $-4,380.96
LEAPS ROI: -86.07%
Margin Gain: $-276.01
Margin ROI: -5.42%
Stock Move: -10%
New Price: $370.88
Intrinsic Value: $0
LEAPS Gain: $-5,090.00
LEAPS ROI: -100.00%
Margin Gain: $-1,265.03
Margin ROI: -24.85%
Stock Move: -25%
New Price: $309.07
Intrinsic Value: $0
LEAPS Gain: $-5,090.00
LEAPS ROI: -100.00%
Margin Gain: $-2,748.55
Margin ROI: -54.00%
Stock Move: -50%
New Price: $206.05
Intrinsic Value: $0
LEAPS Gain: $-5,090.00
LEAPS ROI: -100.00%
Margin Gain: $-5,221.09
Margin ROI: -102.58%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $5,090.00
Projected Stock Price (+25%): $515.11
LEAPS Gain: $5,921.30 | ROI: 116.33%
Margin Gain: $2,196.53 | ROI: 43.15%
LEAPS returned 170% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $5,090.00
Projected Stock Price (+50%): $618.14
LEAPS Gain: $16,223.56 | ROI: 318.73%
Margin Gain: $4,669.08 | ROI: 91.73%
LEAPS returned 247% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $5,090.00
Projected Stock Price (-25%): $309.07
LEAPS Gain: $-5,090.00 | ROI: -100%
Margin Gain: $-2,748.55 | ROI: -54%
LEAPS lost 85% more than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $5,090.00
Projected Stock Price (-50%): $206.05
LEAPS Gain: $-5,090.00 | ROI: -100%
Margin Gain: $-5,221.09 | ROI: -102.58%
LEAPS lost 3% 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: $50.90
Initial Stock Price: $412.09
Strike Price: $405.00
Projected Stock Price (+25% in 1 Year): $515.11
Price Difference (Projected - Strike): $110.11
Total Capital Used: $5,090.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $11,011.30
Time Value Remaining: $0.00
Total LEAPS Value: $11,011.30
Initial LEAPS Cost: $5,090.00
Total LEAPS Gain: $5,921.30

Margin Gain Components (Sell After 1 Year):
Shares Bought: 24
Total Stock Cost: $9,890.17
Borrowed Amount: $4,800.17
Interest Paid: $276.01
Total Margin Gain: $2,196.53

LEAPS vs. Margin Comparison:
LEAPS ROI: 116.33%
Margin ROI: 43.15%
LEAPS Gain: $5,921.30
Margin Gain: $2,196.53
LEAPS Gain Advantage: +$3,724.77
LEAPS returned 170% 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.