OK to Buy KO Leaps +234% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 144.45%, Margin ROI = 43.22%
LEAPS are 234% more profitable than Margin.
LEAPS Premium = 11.3% of Stock Price.

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

LEAPS vs. Margin Comparison for KO

Stock Price: $88.9254
Option Symbol: KO280616C00092500
Option Expiry: 2028-06-16
Days to Expiration: 654 days
Strike Price: $92.5
Option Premium: $10.05
Live Delta: 0.6047
LEAPS Leverage: 5.35x
LEAPS Breakeven: $102.55 +15.3%
LEAPS Premium: 11.3%
Additional Greeks:
Gamma: 0.0188
Theta: -0.011
Vega: 0.4588
Rho: 0.7922
Implied Volatility: N/A
Open Interest: 27
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Scenario Comparison

Initial Investment: $1,005.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
289 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$133.39$3,674.90365.66%$923.4891.89%
25%$111.16$1,451.76144.45%$434.3943.22%
10%$97.82$117.8811.73%$140.9314.02%
0%$88.93$-413.91-41.19%$-54.70-5.44%
-10%$80.03$-413.91-41.19%$-250.34-24.91%
-25%$66.69$-413.91-41.19%$-543.79-54.11%
-50%$44.46$-413.91-41.19%$-1,032.88-102.77%
Stock Move: 50%
New Price: $133.39
Intrinsic Value: $4088.81
LEAPS Gain: $3,674.90
LEAPS ROI: 365.66%
Margin Gain: $923.48
Margin ROI: 91.89%
Stock Move: 25%
New Price: $111.16
Intrinsic Value: $1865.68
LEAPS Gain: $1,451.76
LEAPS ROI: 144.45%
Margin Gain: $434.39
Margin ROI: 43.22%
Stock Move: 10%
New Price: $97.82
Intrinsic Value: $531.79
LEAPS Gain: $117.88
LEAPS ROI: 11.73%
Margin Gain: $140.93
Margin ROI: 14.02%
Stock Move: 0%
New Price: $88.93
Intrinsic Value: $0
LEAPS Gain: $-413.91
LEAPS ROI: -41.19%
Margin Gain: $-54.70
Margin ROI: -5.44%
Stock Move: -10%
New Price: $80.03
Intrinsic Value: $0
LEAPS Gain: $-413.91
LEAPS ROI: -41.19%
Margin Gain: $-250.34
Margin ROI: -24.91%
Stock Move: -25%
New Price: $66.69
Intrinsic Value: $0
LEAPS Gain: $-413.91
LEAPS ROI: -41.19%
Margin Gain: $-543.79
Margin ROI: -54.11%
Stock Move: -50%
New Price: $44.46
Intrinsic Value: $0
LEAPS Gain: $-413.91
LEAPS ROI: -41.19%
Margin Gain: $-1,032.88
Margin ROI: -102.77%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $1,005.00
Projected Stock Price (+25%): $111.16
LEAPS Gain: $1,451.76 | ROI: 144.45%
Margin Gain: $434.39 | ROI: 43.22%
LEAPS returned 234% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $1,005.00
Projected Stock Price (+50%): $133.39
LEAPS Gain: $3,674.90 | ROI: 365.66%
Margin Gain: $923.48 | ROI: 91.89%
LEAPS returned 298% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $1,005.00
Projected Stock Price (-25%): $66.69
LEAPS Gain: $-413.91 | ROI: -41.19%
Margin Gain: $-543.79 | ROI: -54.11%
LEAPS lost 24% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $1,005.00
Projected Stock Price (-50%): $44.46
LEAPS Gain: $-413.91 | ROI: -41.19%
Margin Gain: $-1,032.88 | ROI: -102.77%
LEAPS lost 60% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2028-06-16 (654 days total)
Days Remaining After 1 Year: 289 days
Option Premium: $10.05
Initial Stock Price: $88.93
Strike Price: $92.50
Projected Stock Price (+25% in 1 Year): $111.16
Price Difference (Projected - Strike): $18.66
Total Capital Used: $1,005.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $1,865.68
Time Value Remaining: $591.09
Total LEAPS Value: $2,456.76
Initial LEAPS Cost: $1,005.00
Total LEAPS Gain: $1,451.76

Margin Gain Components (Sell After 1 Year):
Shares Bought: 22
Total Stock Cost: $1,956.36
Borrowed Amount: $951.36
Interest Paid: $54.70
Total Margin Gain: $434.39

LEAPS vs. Margin Comparison:
LEAPS ROI: 144.45%
Margin ROI: 43.22%
LEAPS Gain: $1,451.76
Margin Gain: $434.39
LEAPS Gain Advantage: +$1,017.37
LEAPS returned 234% 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.