OK to Buy KO Leaps +356% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 197.47%, Margin ROI = 43.29%
LEAPS are 356% more profitable than Margin.
LEAPS Premium = 9.23% of Stock Price.

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

LEAPS vs. Margin Comparison for KO

Stock Price: $70.97
Option Symbol: KO270115C00072500
Option Expiry: 2027-01-15
Days to Expiration: 556 days
Strike Price: $72.5
Option Premium: $6.55
Live Delta: 0.6116
LEAPS Leverage: 6.63x
LEAPS Breakeven: $79.05 +11.4%
LEAPS Premium: 9.2%
Additional Greeks:
Gamma: 0.0297
Theta: -0.0082
Vega: 0.336
Rho: 0.5651
Implied Volatility: N/A
Open Interest: 441
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Scenario Comparison

Initial Investment: $655.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
191 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$106.46$3,067.66468.35%$602.9492.05%
25%$88.71$1,293.41197.47%$283.5743.29%
10%$78.07$228.8634.94%$91.9514.04%
0%$70.97$-327.84-50.05%$-35.79-5.46%
-10%$63.87$-327.84-50.05%$-163.54-24.97%
-25%$53.23$-327.84-50.05%$-355.16-54.22%
-50%$35.49$-327.84-50.05%$-674.52-102.98%
Stock Move: 50%
New Price: $106.46
Intrinsic Value: $3395.5
LEAPS Gain: $3,067.66
LEAPS ROI: 468.35%
Margin Gain: $602.94
Margin ROI: 92.05%
Stock Move: 25%
New Price: $88.71
Intrinsic Value: $1621.25
LEAPS Gain: $1,293.41
LEAPS ROI: 197.47%
Margin Gain: $283.57
Margin ROI: 43.29%
Stock Move: 10%
New Price: $78.07
Intrinsic Value: $556.7
LEAPS Gain: $228.86
LEAPS ROI: 34.94%
Margin Gain: $91.95
Margin ROI: 14.04%
Stock Move: 0%
New Price: $70.97
Intrinsic Value: $0
LEAPS Gain: $-327.84
LEAPS ROI: -50.05%
Margin Gain: $-35.79
Margin ROI: -5.46%
Stock Move: -10%
New Price: $63.87
Intrinsic Value: $0
LEAPS Gain: $-327.84
LEAPS ROI: -50.05%
Margin Gain: $-163.54
Margin ROI: -24.97%
Stock Move: -25%
New Price: $53.23
Intrinsic Value: $0
LEAPS Gain: $-327.84
LEAPS ROI: -50.05%
Margin Gain: $-355.16
Margin ROI: -54.22%
Stock Move: -50%
New Price: $35.49
Intrinsic Value: $0
LEAPS Gain: $-327.84
LEAPS ROI: -50.05%
Margin Gain: $-674.52
Margin ROI: -102.98%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $655.00
Projected Stock Price (+25%): $88.71
LEAPS Gain: $1,293.41 | ROI: 197.47%
Margin Gain: $283.57 | ROI: 43.29%
LEAPS returned 356% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $655.00
Projected Stock Price (+50%): $106.46
LEAPS Gain: $3,067.66 | ROI: 468.35%
Margin Gain: $602.94 | ROI: 92.05%
LEAPS returned 409% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $655.00
Projected Stock Price (-25%): $53.23
LEAPS Gain: $-327.84 | ROI: -50.05%
Margin Gain: $-355.16 | ROI: -54.22%
LEAPS lost 8% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $655.00
Projected Stock Price (-50%): $35.49
LEAPS Gain: $-327.84 | ROI: -50.05%
Margin Gain: $-674.52 | ROI: -102.98%
LEAPS lost 51% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2027-01-15 (556 days total)
Days Remaining After 1 Year: 191 days
Option Premium: $6.55
Initial Stock Price: $70.97
Strike Price: $72.50
Projected Stock Price (+25% in 1 Year): $88.71
Price Difference (Projected - Strike): $16.21
Total Capital Used: $655.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $1,621.25
Time Value Remaining: $327.16
Total LEAPS Value: $1,948.41
Initial LEAPS Cost: $655.00
Total LEAPS Gain: $1,293.41
Margin Gain Components (Sell After 1 Year):
Shares Bought: 18
Total Stock Cost: $1,277.46
Borrowed Amount: $622.46
Interest Paid: $35.79
Total Margin Gain: $283.57
LEAPS vs. Margin Comparison:
LEAPS ROI: 197.47%
Margin ROI: 43.29%
LEAPS Gain: $1,293.41
Margin Gain: $283.57
LEAPS Gain Advantage: +$1,009.84
LEAPS returned 356% 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.