OK to Buy QQQ Leaps +222% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 141.62%, Margin ROI = 43.94%
LEAPS are 222% more profitable than Margin.
LEAPS Premium = 11.09% of Stock Price.

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

LEAPS vs. Margin Comparison for QQQ

Stock Price: $711.03
Option Symbol: QQQ271217C00740000
Option Expiry: 2027-12-17
Days to Expiration: 584 days
Strike Price: $740
Option Premium: $78.85
Live Delta: 0.5845
LEAPS Leverage: 5.27x
LEAPS Breakeven: $818.85 +15.2%
LEAPS Premium: 11.1%
Additional Greeks:
Gamma: 0.0018
Theta: -0.1041
Vega: 3.5103
Rho: 5.1995
Implied Volatility: N/A
Open Interest: 142
Scroll down to Unlock the Full Report

Scenario Comparison

Initial Investment: $7,885.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
219 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$1066.55$28,942.30367.06%$7,375.2693.54%
25%$888.79$11,166.55141.62%$3,464.6043.94%
10%$782.13$501.106.36%$1,118.2014.18%
0%$711.03$-3,712.20-47.08%$-446.07-5.66%
-10%$639.93$-3,712.20-47.08%$-2,010.33-25.50%
-25%$533.27$-3,712.20-47.08%$-4,356.73-55.25%
-50%$355.52$-3,712.20-47.08%$-8,267.40-104.85%
Stock Move: 50%
New Price: $1066.55
Intrinsic Value: $32654.5
LEAPS Gain: $28,942.30
LEAPS ROI: 367.06%
Margin Gain: $7,375.26
Margin ROI: 93.54%
Stock Move: 25%
New Price: $888.79
Intrinsic Value: $14878.75
LEAPS Gain: $11,166.55
LEAPS ROI: 141.62%
Margin Gain: $3,464.60
Margin ROI: 43.94%
Stock Move: 10%
New Price: $782.13
Intrinsic Value: $4213.3
LEAPS Gain: $501.10
LEAPS ROI: 6.36%
Margin Gain: $1,118.20
Margin ROI: 14.18%
Stock Move: 0%
New Price: $711.03
Intrinsic Value: $0
LEAPS Gain: $-3,712.20
LEAPS ROI: -47.08%
Margin Gain: $-446.07
Margin ROI: -5.66%
Stock Move: -10%
New Price: $639.93
Intrinsic Value: $0
LEAPS Gain: $-3,712.20
LEAPS ROI: -47.08%
Margin Gain: $-2,010.33
Margin ROI: -25.50%
Stock Move: -25%
New Price: $533.27
Intrinsic Value: $0
LEAPS Gain: $-3,712.20
LEAPS ROI: -47.08%
Margin Gain: $-4,356.73
Margin ROI: -55.25%
Stock Move: -50%
New Price: $355.52
Intrinsic Value: $0
LEAPS Gain: $-3,712.20
LEAPS ROI: -47.08%
Margin Gain: $-8,267.40
Margin ROI: -104.85%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $7,885.00
Projected Stock Price (+25%): $888.79
LEAPS Gain: $11,166.55 | ROI: 141.62%
Margin Gain: $3,464.60 | ROI: 43.94%
LEAPS returned 222% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $7,885.00
Projected Stock Price (+50%): $1066.55
LEAPS Gain: $28,942.30 | ROI: 367.06%
Margin Gain: $7,375.26 | ROI: 93.54%
LEAPS returned 292% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $7,885.00
Projected Stock Price (-25%): $533.27
LEAPS Gain: $-3,712.20 | ROI: -47.08%
Margin Gain: $-4,356.73 | ROI: -55.25%
LEAPS lost 15% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $7,885.00
Projected Stock Price (-50%): $355.52
LEAPS Gain: $-3,712.20 | ROI: -47.08%
Margin Gain: $-8,267.40 | ROI: -104.85%
LEAPS lost 55% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2027-12-17 (585 days total)
Days Remaining After 1 Year: 220 days
Option Premium: $78.85
Initial Stock Price: $711.03
Strike Price: $740.00
Projected Stock Price (+25% in 1 Year): $888.79
Price Difference (Projected - Strike): $148.79
Total Capital Used: $7,885.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $14,878.75
Time Value Remaining: $4,172.80
Total LEAPS Value: $19,051.55
Initial LEAPS Cost: $7,885.00
Total LEAPS Gain: $11,166.55
Margin Gain Components (Sell After 1 Year):
Shares Bought: 22
Total Stock Cost: $15,642.66
Borrowed Amount: $7,757.66
Interest Paid: $446.07
Total Margin Gain: $3,464.60
LEAPS vs. Margin Comparison:
LEAPS ROI: 141.62%
Margin ROI: 43.94%
LEAPS Gain: $11,166.55
Margin Gain: $3,464.60
LEAPS Gain Advantage: +$7,701.95
LEAPS returned 222% 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.