OK to Buy KO Leaps +346% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 193.2%, Margin ROI = 43.28%
LEAPS are 346% more profitable than Margin.
LEAPS Premium = 9.75% of Stock Price.

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

LEAPS vs. Margin Comparison for KO

Stock Price: $75.9225
Option Symbol: KO280121C00077500
Option Expiry: 2028-01-21
Days to Expiration: 643 days
Strike Price: $77.5
Option Premium: $7.4
Live Delta: 0.6274
LEAPS Leverage: 6.44x
LEAPS Breakeven: $84.9 +11.8%
LEAPS Premium: 9.7%
Additional Greeks:
Gamma: 0.0276
Theta: -0.008
Vega: 0.3817
Rho: 0.7158
Implied Volatility: N/A
Open Interest: 1,112
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Scenario Comparison

Initial Investment: $740.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
278 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$113.88$3,327.77449.70%$680.8792.01%
25%$94.9$1,429.71193.20%$320.2443.28%
10%$83.51$290.8739.31%$103.8614.03%
0%$75.92$-310.60-41.97%$-40.40-5.46%
-10%$68.33$-310.60-41.97%$-184.65-24.95%
-25%$56.94$-310.60-41.97%$-401.03-54.19%
-50%$37.96$-310.60-41.97%$-761.66-102.93%
Stock Move: 50%
New Price: $113.88
Intrinsic Value: $3638.38
LEAPS Gain: $3,327.77
LEAPS ROI: 449.70%
Margin Gain: $680.87
Margin ROI: 92.01%
Stock Move: 25%
New Price: $94.9
Intrinsic Value: $1740.31
LEAPS Gain: $1,429.71
LEAPS ROI: 193.20%
Margin Gain: $320.24
Margin ROI: 43.28%
Stock Move: 10%
New Price: $83.51
Intrinsic Value: $601.48
LEAPS Gain: $290.87
LEAPS ROI: 39.31%
Margin Gain: $103.86
Margin ROI: 14.03%
Stock Move: 0%
New Price: $75.92
Intrinsic Value: $0
LEAPS Gain: $-310.60
LEAPS ROI: -41.97%
Margin Gain: $-40.40
Margin ROI: -5.46%
Stock Move: -10%
New Price: $68.33
Intrinsic Value: $0
LEAPS Gain: $-310.60
LEAPS ROI: -41.97%
Margin Gain: $-184.65
Margin ROI: -24.95%
Stock Move: -25%
New Price: $56.94
Intrinsic Value: $0
LEAPS Gain: $-310.60
LEAPS ROI: -41.97%
Margin Gain: $-401.03
Margin ROI: -54.19%
Stock Move: -50%
New Price: $37.96
Intrinsic Value: $0
LEAPS Gain: $-310.60
LEAPS ROI: -41.97%
Margin Gain: $-761.66
Margin ROI: -102.93%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $740.00
Projected Stock Price (+25%): $94.9
LEAPS Gain: $1,429.71 | ROI: 193.2%
Margin Gain: $320.24 | ROI: 43.28%
LEAPS returned 346% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $740.00
Projected Stock Price (+50%): $113.88
LEAPS Gain: $3,327.77 | ROI: 449.7%
Margin Gain: $680.87 | ROI: 92.01%
LEAPS returned 389% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $740.00
Projected Stock Price (-25%): $56.94
LEAPS Gain: $-310.60 | ROI: -41.97%
Margin Gain: $-401.03 | ROI: -54.19%
LEAPS lost 23% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $740.00
Projected Stock Price (-50%): $37.96
LEAPS Gain: $-310.60 | ROI: -41.97%
Margin Gain: $-761.66 | ROI: -102.93%
LEAPS lost 59% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2028-01-21 (644 days total)
Days Remaining After 1 Year: 279 days
Option Premium: $7.40
Initial Stock Price: $75.92
Strike Price: $77.50
Projected Stock Price (+25% in 1 Year): $94.90
Price Difference (Projected - Strike): $17.40
Total Capital Used: $740.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $1,740.31
Time Value Remaining: $429.40
Total LEAPS Value: $2,169.71
Initial LEAPS Cost: $740.00
Total LEAPS Gain: $1,429.71
Margin Gain Components (Sell After 1 Year):
Shares Bought: 19
Total Stock Cost: $1,442.53
Borrowed Amount: $702.53
Interest Paid: $40.40
Total Margin Gain: $320.24
LEAPS vs. Margin Comparison:
LEAPS ROI: 193.20%
Margin ROI: 43.28%
LEAPS Gain: $1,429.71
Margin Gain: $320.24
LEAPS Gain Advantage: +$1,109.47
LEAPS returned 346% 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.