OK to Buy PFE Leaps +278% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 160.96%, Margin ROI = 42.64%
LEAPS are 278% more profitable than Margin.
LEAPS Premium = 9.39% of Stock Price.

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

LEAPS vs. Margin Comparison for PFE

Stock Price: $25.655
Option Symbol: PFE271217C00027000
Option Expiry: 2027-12-17
Days to Expiration: 562 days
Strike Price: $27
Option Premium: $2.41
Live Delta: 0.5582
LEAPS Leverage: 5.94x
LEAPS Breakeven: $29.41 +14.6%
LEAPS Premium: 9.4%
Additional Greeks:
Gamma: 0.0702
Theta: -0.0032
Vega: 0.1258
Rho: 0.1849
Implied Volatility: N/A
Open Interest: 4,387
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Scenario Comparison

Initial Investment: $241.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
197 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$38.48$1,029.29427.09%$218.2090.54%
25%$32.07$387.91160.96%$102.7542.64%
10%$28.22$3.091.28%$33.4813.89%
0%$25.66$-118.96-49.36%$-12.70-5.27%
-10%$23.09$-118.96-49.36%$-58.87-24.43%
-25%$19.24$-118.96-49.36%$-128.14-53.17%
-50%$12.83$-118.96-49.36%$-243.59-101.07%
Stock Move: 50%
New Price: $38.48
Intrinsic Value: $1148.25
LEAPS Gain: $1,029.29
LEAPS ROI: 427.09%
Margin Gain: $218.20
Margin ROI: 90.54%
Stock Move: 25%
New Price: $32.07
Intrinsic Value: $506.88
LEAPS Gain: $387.91
LEAPS ROI: 160.96%
Margin Gain: $102.75
Margin ROI: 42.64%
Stock Move: 10%
New Price: $28.22
Intrinsic Value: $122.05
LEAPS Gain: $3.09
LEAPS ROI: 1.28%
Margin Gain: $33.48
Margin ROI: 13.89%
Stock Move: 0%
New Price: $25.66
Intrinsic Value: $0
LEAPS Gain: $-118.96
LEAPS ROI: -49.36%
Margin Gain: $-12.70
Margin ROI: -5.27%
Stock Move: -10%
New Price: $23.09
Intrinsic Value: $0
LEAPS Gain: $-118.96
LEAPS ROI: -49.36%
Margin Gain: $-58.87
Margin ROI: -24.43%
Stock Move: -25%
New Price: $19.24
Intrinsic Value: $0
LEAPS Gain: $-118.96
LEAPS ROI: -49.36%
Margin Gain: $-128.14
Margin ROI: -53.17%
Stock Move: -50%
New Price: $12.83
Intrinsic Value: $0
LEAPS Gain: $-118.96
LEAPS ROI: -49.36%
Margin Gain: $-243.59
Margin ROI: -101.07%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $241.00
Projected Stock Price (+25%): $32.07
LEAPS Gain: $387.91 | ROI: 160.96%
Margin Gain: $102.75 | ROI: 42.64%
LEAPS returned 278% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $241.00
Projected Stock Price (+50%): $38.48
LEAPS Gain: $1,029.29 | ROI: 427.09%
Margin Gain: $218.20 | ROI: 90.54%
LEAPS returned 372% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $241.00
Projected Stock Price (-25%): $19.24
LEAPS Gain: $-118.96 | ROI: -49.36%
Margin Gain: $-128.14 | ROI: -53.17%
LEAPS lost 7% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $241.00
Projected Stock Price (-50%): $12.83
LEAPS Gain: $-118.96 | ROI: -49.36%
Margin Gain: $-243.59 | ROI: -101.07%
LEAPS lost 51% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2027-12-17 (562 days total)
Days Remaining After 1 Year: 197 days
Option Premium: $2.41
Initial Stock Price: $25.66
Strike Price: $27.00
Projected Stock Price (+25% in 1 Year): $32.07
Price Difference (Projected - Strike): $5.07
Total Capital Used: $241.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $506.88
Time Value Remaining: $122.04
Total LEAPS Value: $628.91
Initial LEAPS Cost: $241.00
Total LEAPS Gain: $387.91

Margin Gain Components (Sell After 1 Year):
Shares Bought: 18
Total Stock Cost: $461.79
Borrowed Amount: $220.79
Interest Paid: $12.70
Total Margin Gain: $102.75

LEAPS vs. Margin Comparison:
LEAPS ROI: 160.96%
Margin ROI: 42.64%
LEAPS Gain: $387.91
Margin Gain: $102.75
LEAPS Gain Advantage: +$285.16
LEAPS returned 278% more gains than Margin.
LEAPS Risk to Reward Score
Good Risk to Reward
77/100
Base Performance Score: 80
Bonuses: 7
  • +7 (18-24 Month Expiration)
Penalties: 10
  • -10 (High Leverage)

Final Risk vs Reward Score: 77/100
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.