OK to Buy PG Leaps +355% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 199.19%, Margin ROI = 43.82%
LEAPS are 355% more profitable than Margin.
LEAPS Premium = 9.61% of Stock Price.

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

LEAPS vs. Margin Comparison for PG

Stock Price: $147.3
Option Symbol: PG280121C00150000
Option Expiry: 2028-01-21
Days to Expiration: 643 days
Strike Price: $150
Option Premium: $14.15
Live Delta: 0.6236
LEAPS Leverage: 6.49x
LEAPS Breakeven: $164.15 +11.4%
LEAPS Premium: 9.6%
Additional Greeks:
Gamma: 0.012
Theta: -0.0168
Vega: 0.7428
Rho: 1.3416
Implied Volatility: N/A
Open Interest: 531
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Scenario Comparison

Initial Investment: $1,415.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
278 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$220.95$6,501.08459.44%$1,319.7993.27%
25%$184.13$2,818.58199.19%$620.1143.82%
10%$162.03$609.0843.04%$200.3114.16%
0%$147.3$-593.92-41.97%$-79.56-5.62%
-10%$132.57$-593.92-41.97%$-359.43-25.40%
-25%$110.48$-593.92-41.97%$-779.24-55.07%
-50%$73.65$-593.92-41.97%$-1,478.91-104.52%
Stock Move: 50%
New Price: $220.95
Intrinsic Value: $7095
LEAPS Gain: $6,501.08
LEAPS ROI: 459.44%
Margin Gain: $1,319.79
Margin ROI: 93.27%
Stock Move: 25%
New Price: $184.13
Intrinsic Value: $3412.5
LEAPS Gain: $2,818.58
LEAPS ROI: 199.19%
Margin Gain: $620.11
Margin ROI: 43.82%
Stock Move: 10%
New Price: $162.03
Intrinsic Value: $1203
LEAPS Gain: $609.08
LEAPS ROI: 43.04%
Margin Gain: $200.31
Margin ROI: 14.16%
Stock Move: 0%
New Price: $147.3
Intrinsic Value: $0
LEAPS Gain: $-593.92
LEAPS ROI: -41.97%
Margin Gain: $-79.56
Margin ROI: -5.62%
Stock Move: -10%
New Price: $132.57
Intrinsic Value: $0
LEAPS Gain: $-593.92
LEAPS ROI: -41.97%
Margin Gain: $-359.43
Margin ROI: -25.40%
Stock Move: -25%
New Price: $110.48
Intrinsic Value: $0
LEAPS Gain: $-593.92
LEAPS ROI: -41.97%
Margin Gain: $-779.24
Margin ROI: -55.07%
Stock Move: -50%
New Price: $73.65
Intrinsic Value: $0
LEAPS Gain: $-593.92
LEAPS ROI: -41.97%
Margin Gain: $-1,478.91
Margin ROI: -104.52%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $1,415.00
Projected Stock Price (+25%): $184.13
LEAPS Gain: $2,818.58 | ROI: 199.19%
Margin Gain: $620.11 | ROI: 43.82%
LEAPS returned 355% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $1,415.00
Projected Stock Price (+50%): $220.95
LEAPS Gain: $6,501.08 | ROI: 459.44%
Margin Gain: $1,319.79 | ROI: 93.27%
LEAPS returned 393% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $1,415.00
Projected Stock Price (-25%): $110.48
LEAPS Gain: $-593.92 | ROI: -41.97%
Margin Gain: $-779.24 | ROI: -55.07%
LEAPS lost 24% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $1,415.00
Projected Stock Price (-50%): $73.65
LEAPS Gain: $-593.92 | ROI: -41.97%
Margin Gain: $-1,478.91 | ROI: -104.52%
LEAPS lost 60% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2028-01-21 (644 days total)
Days Remaining After 1 Year: 279 days
Option Premium: $14.15
Initial Stock Price: $147.30
Strike Price: $150.00
Projected Stock Price (+25% in 1 Year): $184.13
Price Difference (Projected - Strike): $34.13
Total Capital Used: $1,415.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $3,412.50
Time Value Remaining: $821.08
Total LEAPS Value: $4,233.58
Initial LEAPS Cost: $1,415.00
Total LEAPS Gain: $2,818.58
Margin Gain Components (Sell After 1 Year):
Shares Bought: 19
Total Stock Cost: $2,798.70
Borrowed Amount: $1,383.70
Interest Paid: $79.56
Total Margin Gain: $620.11
LEAPS vs. Margin Comparison:
LEAPS ROI: 199.19%
Margin ROI: 43.82%
LEAPS Gain: $2,818.58
Margin Gain: $620.11
LEAPS Gain Advantage: +$2,198.47
LEAPS returned 355% 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.