OK to Buy PG Leaps +303% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 177.02%, Margin ROI = 43.9%
LEAPS are 303% more profitable than Margin.
LEAPS Premium = 9.59% of Stock Price.

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

LEAPS vs. Margin Comparison for PG

Stock Price: $150.21
Option Symbol: PG280121C00155000
Option Expiry: 2028-01-21
Days to Expiration: 552 days
Strike Price: $155
Option Premium: $14.4
Live Delta: 0.5939
LEAPS Leverage: 6.2x
LEAPS Breakeven: $169.4 +12.8%
LEAPS Premium: 9.6%
Additional Greeks:
Gamma: 0.0106
Theta: -0.0206
Vega: 0.7171
Rho: 1.1015
Implied Volatility: N/A
Open Interest: 292
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Scenario Comparison

Initial Investment: $1,440.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
187 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$225.32$6,304.35437.80%$1,345.6993.45%
25%$187.76$2,549.10177.02%$632.1943.90%
10%$165.23$295.9520.55%$204.0914.17%
0%$150.21$-727.15-50.50%$-81.30-5.65%
-10%$135.19$-727.15-50.50%$-366.70-25.47%
-25%$112.66$-727.15-50.50%$-794.80-55.19%
-50%$75.11$-727.15-50.50%$-1,508.30-104.74%
Stock Move: 50%
New Price: $225.32
Intrinsic Value: $7031.5
LEAPS Gain: $6,304.35
LEAPS ROI: 437.80%
Margin Gain: $1,345.69
Margin ROI: 93.45%
Stock Move: 25%
New Price: $187.76
Intrinsic Value: $3276.25
LEAPS Gain: $2,549.10
LEAPS ROI: 177.02%
Margin Gain: $632.19
Margin ROI: 43.90%
Stock Move: 10%
New Price: $165.23
Intrinsic Value: $1023.1
LEAPS Gain: $295.95
LEAPS ROI: 20.55%
Margin Gain: $204.09
Margin ROI: 14.17%
Stock Move: 0%
New Price: $150.21
Intrinsic Value: $0
LEAPS Gain: $-727.15
LEAPS ROI: -50.50%
Margin Gain: $-81.30
Margin ROI: -5.65%
Stock Move: -10%
New Price: $135.19
Intrinsic Value: $0
LEAPS Gain: $-727.15
LEAPS ROI: -50.50%
Margin Gain: $-366.70
Margin ROI: -25.47%
Stock Move: -25%
New Price: $112.66
Intrinsic Value: $0
LEAPS Gain: $-727.15
LEAPS ROI: -50.50%
Margin Gain: $-794.80
Margin ROI: -55.19%
Stock Move: -50%
New Price: $75.11
Intrinsic Value: $0
LEAPS Gain: $-727.15
LEAPS ROI: -50.50%
Margin Gain: $-1,508.30
Margin ROI: -104.74%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $1,440.00
Projected Stock Price (+25%): $187.76
LEAPS Gain: $2,549.10 | ROI: 177.02%
Margin Gain: $632.19 | ROI: 43.9%
LEAPS returned 303% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $1,440.00
Projected Stock Price (+50%): $225.32
LEAPS Gain: $6,304.35 | ROI: 437.8%
Margin Gain: $1,345.69 | ROI: 93.45%
LEAPS returned 368% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $1,440.00
Projected Stock Price (-25%): $112.66
LEAPS Gain: $-727.15 | ROI: -50.5%
Margin Gain: $-794.80 | ROI: -55.19%
LEAPS lost 9% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $1,440.00
Projected Stock Price (-50%): $75.11
LEAPS Gain: $-727.15 | ROI: -50.5%
Margin Gain: $-1,508.30 | ROI: -104.74%
LEAPS lost 52% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2028-01-21 (552 days total)
Days Remaining After 1 Year: 187 days
Option Premium: $14.40
Initial Stock Price: $150.21
Strike Price: $155.00
Projected Stock Price (+25% in 1 Year): $187.76
Price Difference (Projected - Strike): $32.76
Total Capital Used: $1,440.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $3,276.25
Time Value Remaining: $712.85
Total LEAPS Value: $3,989.10
Initial LEAPS Cost: $1,440.00
Total LEAPS Gain: $2,549.10

Margin Gain Components (Sell After 1 Year):
Shares Bought: 19
Total Stock Cost: $2,853.99
Borrowed Amount: $1,413.99
Interest Paid: $81.30
Total Margin Gain: $632.19

LEAPS vs. Margin Comparison:
LEAPS ROI: 177.02%
Margin ROI: 43.90%
LEAPS Gain: $2,549.10
Margin Gain: $632.19
LEAPS Gain Advantage: +$1,916.91
LEAPS returned 303% 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.