OK to Buy PEP Leaps +370% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 206.4%, Margin ROI = 43.87%
LEAPS are 370% more profitable than Margin.
LEAPS Premium = 8.58% 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: $142
Option Symbol: PEP270115C00145000
Option Expiry: 2027-01-15
Days to Expiration: 481 days
Strike Price: $145
Option Premium: $12.19
Live Delta: 0.588
LEAPS Leverage: 6.85x
LEAPS Breakeven: $157.19 +10.7%
LEAPS Premium: 8.6%
Additional Greeks:
Gamma: 0.0138
Theta: -0.0181
Vega: 0.6351
Rho: 0.9319
Implied Volatility: N/A
Open Interest: 553
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Scenario Comparison

Initial Investment: $1,219.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
116 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$213$6,065.96497.62%$1,138.2993.38%
25%$177.5$2,515.96206.40%$534.7943.87%
10%$156.2$385.9631.66%$172.6914.17%
0%$142$-734.04-60.22%$-68.71-5.64%
-10%$127.8$-734.04-60.22%$-310.11-25.44%
-25%$106.5$-734.04-60.22%$-672.21-55.14%
-50%$71$-734.04-60.22%$-1,275.71-104.65%
Stock Move: 50%
New Price: $213
Intrinsic Value: $6800
LEAPS Gain: $6,065.96
LEAPS ROI: 497.62%
Margin Gain: $1,138.29
Margin ROI: 93.38%
Stock Move: 25%
New Price: $177.5
Intrinsic Value: $3250
LEAPS Gain: $2,515.96
LEAPS ROI: 206.40%
Margin Gain: $534.79
Margin ROI: 43.87%
Stock Move: 10%
New Price: $156.2
Intrinsic Value: $1120
LEAPS Gain: $385.96
LEAPS ROI: 31.66%
Margin Gain: $172.69
Margin ROI: 14.17%
Stock Move: 0%
New Price: $142
Intrinsic Value: $0
LEAPS Gain: $-734.04
LEAPS ROI: -60.22%
Margin Gain: $-68.71
Margin ROI: -5.64%
Stock Move: -10%
New Price: $127.8
Intrinsic Value: $0
LEAPS Gain: $-734.04
LEAPS ROI: -60.22%
Margin Gain: $-310.11
Margin ROI: -25.44%
Stock Move: -25%
New Price: $106.5
Intrinsic Value: $0
LEAPS Gain: $-734.04
LEAPS ROI: -60.22%
Margin Gain: $-672.21
Margin ROI: -55.14%
Stock Move: -50%
New Price: $71
Intrinsic Value: $0
LEAPS Gain: $-734.04
LEAPS ROI: -60.22%
Margin Gain: $-1,275.71
Margin ROI: -104.65%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $1,219.00
Projected Stock Price (+25%): $177.5
LEAPS Gain: $2,515.96 | ROI: 206.4%
Margin Gain: $534.79 | ROI: 43.87%
LEAPS returned 370% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $1,219.00
Projected Stock Price (+50%): $213
LEAPS Gain: $6,065.96 | ROI: 497.62%
Margin Gain: $1,138.29 | ROI: 93.38%
LEAPS returned 433% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $1,219.00
Projected Stock Price (-25%): $106.5
LEAPS Gain: $-734.04 | ROI: -60.22%
Margin Gain: $-672.21 | ROI: -55.14%
LEAPS lost 9% more than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $1,219.00
Projected Stock Price (-50%): $71
LEAPS Gain: $-734.04 | ROI: -60.22%
Margin Gain: $-1,275.71 | ROI: -104.65%
LEAPS lost 42% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2027-01-15 (482 days total)
Days Remaining After 1 Year: 117 days
Option Premium: $12.19
Initial Stock Price: $142.00
Strike Price: $145.00
Projected Stock Price (+25% in 1 Year): $177.50
Price Difference (Projected - Strike): $32.50
Total Capital Used: $1,219.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $3,250.00
Time Value Remaining: $484.96
Total LEAPS Value: $3,734.96
Initial LEAPS Cost: $1,219.00
Total LEAPS Gain: $2,515.96
Margin Gain Components (Sell After 1 Year):
Shares Bought: 17
Total Stock Cost: $2,414.00
Borrowed Amount: $1,195.00
Interest Paid: $68.71
Total Margin Gain: $534.79
LEAPS vs. Margin Comparison:
LEAPS ROI: 206.40%
Margin ROI: 43.87%
LEAPS Gain: $2,515.96
Margin Gain: $534.79
LEAPS Gain Advantage: +$1,981.17
LEAPS returned 370% 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.