OK to Buy PEP Leaps +276% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 160.68%, Margin ROI = 42.71%
LEAPS are 276% more profitable than Margin.
LEAPS Premium = 8.33% of Stock Price.

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

No LEAPS found 18+ months out. Showing available 12+ months LEAPS.

LEAPS vs. Margin Comparison for PEP

Stock Price: $140.4
Option Symbol: PEP270917C00145000
Option Expiry: 2027-09-17
Days to Expiration: 381 days
Strike Price: $145
Option Premium: $11.7
Live Delta: 0.5591
LEAPS Leverage: 6.71x
LEAPS Breakeven: $156.7 +11.6%
LEAPS Premium: 8.3%
Additional Greeks:
Gamma: 0.0151
Theta: -0.021
Vega: 0.5667
Rho: 0.7053
Implied Volatility: N/A
Open Interest: 2
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Scenario Comparison

Initial Investment: $1,170.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
16 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$210.6$5,390.00460.68%$1,061.3190.71%
25%$175.5$1,880.00160.68%$499.7142.71%
10%$154.44$-226.00-19.32%$162.7513.91%
0%$140.4$-1,170.00-100.00%$-61.89-5.29%
-10%$126.36$-1,170.00-100.00%$-286.53-24.49%
-25%$105.3$-1,170.00-100.00%$-623.49-53.29%
-50%$70.2$-1,170.00-100.00%$-1,185.09-101.29%
Stock Move: 50%
New Price: $210.6
Intrinsic Value: $6560
LEAPS Gain: $5,390.00
LEAPS ROI: 460.68%
Margin Gain: $1,061.31
Margin ROI: 90.71%
Stock Move: 25%
New Price: $175.5
Intrinsic Value: $3050
LEAPS Gain: $1,880.00
LEAPS ROI: 160.68%
Margin Gain: $499.71
Margin ROI: 42.71%
Stock Move: 10%
New Price: $154.44
Intrinsic Value: $944
LEAPS Gain: $-226.00
LEAPS ROI: -19.32%
Margin Gain: $162.75
Margin ROI: 13.91%
Stock Move: 0%
New Price: $140.4
Intrinsic Value: $0
LEAPS Gain: $-1,170.00
LEAPS ROI: -100.00%
Margin Gain: $-61.89
Margin ROI: -5.29%
Stock Move: -10%
New Price: $126.36
Intrinsic Value: $0
LEAPS Gain: $-1,170.00
LEAPS ROI: -100.00%
Margin Gain: $-286.53
Margin ROI: -24.49%
Stock Move: -25%
New Price: $105.3
Intrinsic Value: $0
LEAPS Gain: $-1,170.00
LEAPS ROI: -100.00%
Margin Gain: $-623.49
Margin ROI: -53.29%
Stock Move: -50%
New Price: $70.2
Intrinsic Value: $0
LEAPS Gain: $-1,170.00
LEAPS ROI: -100.00%
Margin Gain: $-1,185.09
Margin ROI: -101.29%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $1,170.00
Projected Stock Price (+25%): $175.5
LEAPS Gain: $1,880.00 | ROI: 160.68%
Margin Gain: $499.71 | ROI: 42.71%
LEAPS returned 276% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $1,170.00
Projected Stock Price (+50%): $210.6
LEAPS Gain: $5,390.00 | ROI: 460.68%
Margin Gain: $1,061.31 | ROI: 90.71%
LEAPS returned 408% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $1,170.00
Projected Stock Price (-25%): $105.3
LEAPS Gain: $-1,170.00 | ROI: -100%
Margin Gain: $-623.49 | ROI: -53.29%
LEAPS lost 88% more than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $1,170.00
Projected Stock Price (-50%): $70.2
LEAPS Gain: $-1,170.00 | ROI: -100%
Margin Gain: $-1,185.09 | ROI: -101.29%
LEAPS lost 1% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2027-09-17 (381 days total)
Days Remaining After 1 Year: 16 days
Option Premium: $11.70
Initial Stock Price: $140.40
Strike Price: $145.00
Projected Stock Price (+25% in 1 Year): $175.50
Price Difference (Projected - Strike): $30.50
Total Capital Used: $1,170.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $3,050.00
Time Value Remaining: $0.00
Total LEAPS Value: $3,050.00
Initial LEAPS Cost: $1,170.00
Total LEAPS Gain: $1,880.00

Margin Gain Components (Sell After 1 Year):
Shares Bought: 16
Total Stock Cost: $2,246.40
Borrowed Amount: $1,076.40
Interest Paid: $61.89
Total Margin Gain: $499.71

LEAPS vs. Margin Comparison:
LEAPS ROI: 160.68%
Margin ROI: 42.71%
LEAPS Gain: $1,880.00
Margin Gain: $499.71
LEAPS Gain Advantage: +$1,380.29
LEAPS returned 276% more gains than Margin.
LEAPS Risk to Reward Score
Good Risk to Reward
80/100
Base Performance Score: 80
Bonuses: 10
  • +5 (12-18 Month Expiration)
  • +5 (ATM Strike)
Penalties: 10
  • -10 (High Leverage)

Final Risk vs Reward Score: 80/100
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.