OK to Buy PEP Leaps +290% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 165.98%, Margin ROI = 42.55%
LEAPS are 290% more profitable than Margin.
LEAPS Premium = 8.37% 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: $146.0018
Option Symbol: PEP261218C00150000
Option Expiry: 2026-12-18
Days to Expiration: 391 days
Strike Price: $150
Option Premium: $12.22
Live Delta: 0.5608
LEAPS Leverage: 6.7x
LEAPS Breakeven: $162.22 +11.1%
LEAPS Premium: 8.4%
Additional Greeks:
Gamma: 0.0133
Theta: -0.0216
Vega: 0.5966
Rho: 0.7445
Implied Volatility: N/A
Open Interest: 1,828
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Scenario Comparison

Initial Investment: $1,222.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
26 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$219$5,678.27464.67%$1,103.9690.34%
25%$182.5$2,028.23165.98%$519.9542.55%
10%$160.6$-161.80-13.24%$169.5513.87%
0%$146$-1,222.00-100.00%$-64.06-5.24%
-10%$131.4$-1,222.00-100.00%$-297.66-24.36%
-25%$109.5$-1,222.00-100.00%$-648.06-53.03%
-50%$73$-1,222.00-100.00%$-1,232.07-100.82%
Stock Move: 50%
New Price: $219
Intrinsic Value: $6900.27
LEAPS Gain: $5,678.27
LEAPS ROI: 464.67%
Margin Gain: $1,103.96
Margin ROI: 90.34%
Stock Move: 25%
New Price: $182.5
Intrinsic Value: $3250.23
LEAPS Gain: $2,028.23
LEAPS ROI: 165.98%
Margin Gain: $519.95
Margin ROI: 42.55%
Stock Move: 10%
New Price: $160.6
Intrinsic Value: $1060.2
LEAPS Gain: $-161.80
LEAPS ROI: -13.24%
Margin Gain: $169.55
Margin ROI: 13.87%
Stock Move: 0%
New Price: $146
Intrinsic Value: $0
LEAPS Gain: $-1,222.00
LEAPS ROI: -100.00%
Margin Gain: $-64.06
Margin ROI: -5.24%
Stock Move: -10%
New Price: $131.4
Intrinsic Value: $0
LEAPS Gain: $-1,222.00
LEAPS ROI: -100.00%
Margin Gain: $-297.66
Margin ROI: -24.36%
Stock Move: -25%
New Price: $109.5
Intrinsic Value: $0
LEAPS Gain: $-1,222.00
LEAPS ROI: -100.00%
Margin Gain: $-648.06
Margin ROI: -53.03%
Stock Move: -50%
New Price: $73
Intrinsic Value: $0
LEAPS Gain: $-1,222.00
LEAPS ROI: -100.00%
Margin Gain: $-1,232.07
Margin ROI: -100.82%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $1,222.00
Projected Stock Price (+25%): $182.5
LEAPS Gain: $2,028.23 | ROI: 165.98%
Margin Gain: $519.95 | ROI: 42.55%
LEAPS returned 290% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $1,222.00
Projected Stock Price (+50%): $219
LEAPS Gain: $5,678.27 | ROI: 464.67%
Margin Gain: $1,103.96 | ROI: 90.34%
LEAPS returned 414% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $1,222.00
Projected Stock Price (-25%): $109.5
LEAPS Gain: $-1,222.00 | ROI: -100%
Margin Gain: $-648.06 | ROI: -53.03%
LEAPS lost 89% more than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $1,222.00
Projected Stock Price (-50%): $73
LEAPS Gain: $-1,222.00 | ROI: -100%
Margin Gain: $-1,232.07 | ROI: -100.82%
LEAPS lost 1% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2026-12-18 (392 days total)
Days Remaining After 1 Year: 27 days
Option Premium: $12.22
Initial Stock Price: $146.00
Strike Price: $150.00
Projected Stock Price (+25% in 1 Year): $182.50
Price Difference (Projected - Strike): $32.50
Total Capital Used: $1,222.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $3,250.23
Time Value Remaining: $0.00
Total LEAPS Value: $3,250.23
Initial LEAPS Cost: $1,222.00
Total LEAPS Gain: $2,028.23

Margin Gain Components (Sell After 1 Year):
Shares Bought: 16
Total Stock Cost: $2,336.03
Borrowed Amount: $1,114.03
Interest Paid: $64.06
Total Margin Gain: $519.95

LEAPS vs. Margin Comparison:
LEAPS ROI: 165.98%
Margin ROI: 42.55%
LEAPS Gain: $2,028.23
Margin Gain: $519.95
LEAPS Gain Advantage: +$1,508.28
LEAPS returned 290% 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.