OK to Buy KO Leaps +527% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 272.13%, Margin ROI = 43.43%
LEAPS are 527% more profitable than Margin.
LEAPS Premium = 6.64% of Stock Price.

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

LEAPS vs. Margin Comparison for KO

Stock Price: $93.8
Option Symbol: KO280616C00097500
Option Expiry: 2028-06-16
Days to Expiration: 608 days
Strike Price: $97.5
Option Premium: $6.23
Live Delta: 0.6069
LEAPS Leverage: 9.14x
LEAPS Breakeven: $103.73 +10.6%
LEAPS Premium: 6.6%
Additional Greeks:
Gamma: 0.0174
Theta: -0.0127
Vega: 0.4659
Rho: 0.7759
Implied Volatility: N/A
Open Interest: 38
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Scenario Comparison

Initial Investment: $623.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
243 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$140.7$4,040.36648.53%$575.4192.36%
25%$117.25$1,695.36272.13%$270.5643.43%
10%$103.18$288.3646.29%$87.6514.07%
0%$93.8$-279.64-44.89%$-34.29-5.50%
-10%$84.42$-279.64-44.89%$-156.23-25.08%
-25%$70.35$-279.64-44.89%$-339.14-54.44%
-50%$46.9$-279.64-44.89%$-643.99-103.37%
Stock Move: 50%
New Price: $140.7
Intrinsic Value: $4320
LEAPS Gain: $4,040.36
LEAPS ROI: 648.53%
Margin Gain: $575.41
Margin ROI: 92.36%
Stock Move: 25%
New Price: $117.25
Intrinsic Value: $1975
LEAPS Gain: $1,695.36
LEAPS ROI: 272.13%
Margin Gain: $270.56
Margin ROI: 43.43%
Stock Move: 10%
New Price: $103.18
Intrinsic Value: $568
LEAPS Gain: $288.36
LEAPS ROI: 46.29%
Margin Gain: $87.65
Margin ROI: 14.07%
Stock Move: 0%
New Price: $93.8
Intrinsic Value: $0
LEAPS Gain: $-279.64
LEAPS ROI: -44.89%
Margin Gain: $-34.29
Margin ROI: -5.50%
Stock Move: -10%
New Price: $84.42
Intrinsic Value: $0
LEAPS Gain: $-279.64
LEAPS ROI: -44.89%
Margin Gain: $-156.23
Margin ROI: -25.08%
Stock Move: -25%
New Price: $70.35
Intrinsic Value: $0
LEAPS Gain: $-279.64
LEAPS ROI: -44.89%
Margin Gain: $-339.14
Margin ROI: -54.44%
Stock Move: -50%
New Price: $46.9
Intrinsic Value: $0
LEAPS Gain: $-279.64
LEAPS ROI: -44.89%
Margin Gain: $-643.99
Margin ROI: -103.37%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $623.00
Projected Stock Price (+25%): $117.25
LEAPS Gain: $1,695.36 | ROI: 272.13%
Margin Gain: $270.56 | ROI: 43.43%
LEAPS returned 527% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $623.00
Projected Stock Price (+50%): $140.7
LEAPS Gain: $4,040.36 | ROI: 648.53%
Margin Gain: $575.41 | ROI: 92.36%
LEAPS returned 602% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $623.00
Projected Stock Price (-25%): $70.35
LEAPS Gain: $-279.64 | ROI: -44.89%
Margin Gain: $-339.14 | ROI: -54.44%
LEAPS lost 18% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $623.00
Projected Stock Price (-50%): $46.9
LEAPS Gain: $-279.64 | ROI: -44.89%
Margin Gain: $-643.99 | ROI: -103.37%
LEAPS lost 57% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2028-06-16 (608 days total)
Days Remaining After 1 Year: 243 days
Option Premium: $6.23
Initial Stock Price: $93.80
Strike Price: $97.50
Projected Stock Price (+25% in 1 Year): $117.25
Price Difference (Projected - Strike): $19.75
Total Capital Used: $623.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $1,975.00
Time Value Remaining: $343.36
Total LEAPS Value: $2,318.36
Initial LEAPS Cost: $623.00
Total LEAPS Gain: $1,695.36
Margin Gain Components (Sell After 1 Year):
Shares Bought: 13
Total Stock Cost: $1,219.40
Borrowed Amount: $596.40
Interest Paid: $34.29
Total Margin Gain: $270.56
LEAPS vs. Margin Comparison:
LEAPS ROI: 272.13%
Margin ROI: 43.43%
LEAPS Gain: $1,695.36
Margin Gain: $270.56
LEAPS Gain Advantage: +$1,424.80
LEAPS returned 527% more gains than Margin.
LEAPS Risk to Reward Score
Good Risk to Reward
82/100
Base Performance Score: 80
Bonuses: 12
  • +7 (18-24 Month Expiration)
  • +5 (ATM 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.