OK to Buy PG Leaps +237% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 148.57%, Margin ROI = 44.03%
LEAPS are 237% more profitable than Margin.
LEAPS Premium = 11.06% of Stock Price.

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

LEAPS vs. Margin Comparison for PG

Stock Price: $140.11
Option Symbol: PG280121C00145000
Option Expiry: 2028-01-21
Days to Expiration: 597 days
Strike Price: $145
Option Premium: $15.5
Live Delta: 0.6274
LEAPS Leverage: 5.67x
LEAPS Breakeven: $160.5 +14.6%
LEAPS Premium: 11.1%
Additional Greeks:
Gamma: 0.0121
Theta: -0.0198
Vega: 0.6787
Rho: 1.1829
Implied Volatility: N/A
Open Interest: 176
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Scenario Comparison

Initial Investment: $1,550.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
232 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$210.17$5,805.63374.56%$1,453.1093.75%
25%$175.14$2,302.88148.57%$682.4944.03%
10%$154.12$201.2312.98%$220.1314.20%
0%$140.11$-710.87-45.86%$-88.11-5.68%
-10%$126.1$-710.87-45.86%$-396.36-25.57%
-25%$105.08$-710.87-45.86%$-858.72-55.40%
-50%$70.06$-710.87-45.86%$-1,629.32-105.12%
Stock Move: 50%
New Price: $210.17
Intrinsic Value: $6516.5
LEAPS Gain: $5,805.63
LEAPS ROI: 374.56%
Margin Gain: $1,453.10
Margin ROI: 93.75%
Stock Move: 25%
New Price: $175.14
Intrinsic Value: $3013.75
LEAPS Gain: $2,302.88
LEAPS ROI: 148.57%
Margin Gain: $682.49
Margin ROI: 44.03%
Stock Move: 10%
New Price: $154.12
Intrinsic Value: $912.1
LEAPS Gain: $201.23
LEAPS ROI: 12.98%
Margin Gain: $220.13
Margin ROI: 14.20%
Stock Move: 0%
New Price: $140.11
Intrinsic Value: $0
LEAPS Gain: $-710.87
LEAPS ROI: -45.86%
Margin Gain: $-88.11
Margin ROI: -5.68%
Stock Move: -10%
New Price: $126.1
Intrinsic Value: $0
LEAPS Gain: $-710.87
LEAPS ROI: -45.86%
Margin Gain: $-396.36
Margin ROI: -25.57%
Stock Move: -25%
New Price: $105.08
Intrinsic Value: $0
LEAPS Gain: $-710.87
LEAPS ROI: -45.86%
Margin Gain: $-858.72
Margin ROI: -55.40%
Stock Move: -50%
New Price: $70.06
Intrinsic Value: $0
LEAPS Gain: $-710.87
LEAPS ROI: -45.86%
Margin Gain: $-1,629.32
Margin ROI: -105.12%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $1,550.00
Projected Stock Price (+25%): $175.14
LEAPS Gain: $2,302.88 | ROI: 148.57%
Margin Gain: $682.49 | ROI: 44.03%
LEAPS returned 237% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $1,550.00
Projected Stock Price (+50%): $210.17
LEAPS Gain: $5,805.63 | ROI: 374.56%
Margin Gain: $1,453.10 | ROI: 93.75%
LEAPS returned 300% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $1,550.00
Projected Stock Price (-25%): $105.08
LEAPS Gain: $-710.87 | ROI: -45.86%
Margin Gain: $-858.72 | ROI: -55.4%
LEAPS lost 17% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $1,550.00
Projected Stock Price (-50%): $70.06
LEAPS Gain: $-710.87 | ROI: -45.86%
Margin Gain: $-1,629.32 | ROI: -105.12%
LEAPS lost 56% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2028-01-21 (597 days total)
Days Remaining After 1 Year: 232 days
Option Premium: $15.50
Initial Stock Price: $140.11
Strike Price: $145.00
Projected Stock Price (+25% in 1 Year): $175.14
Price Difference (Projected - Strike): $30.14
Total Capital Used: $1,550.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $3,013.75
Time Value Remaining: $839.13
Total LEAPS Value: $3,852.88
Initial LEAPS Cost: $1,550.00
Total LEAPS Gain: $2,302.88

Margin Gain Components (Sell After 1 Year):
Shares Bought: 22
Total Stock Cost: $3,082.42
Borrowed Amount: $1,532.42
Interest Paid: $88.11
Total Margin Gain: $682.49

LEAPS vs. Margin Comparison:
LEAPS ROI: 148.57%
Margin ROI: 44.03%
LEAPS Gain: $2,302.88
Margin Gain: $682.49
LEAPS Gain Advantage: +$1,620.39
LEAPS returned 237% 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.