OK to Buy QQQ Leaps +146% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 108.18%, Margin ROI = 43.99%
LEAPS are 146% more profitable than Margin.
LEAPS Premium = 14.09% of Stock Price.

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

LEAPS vs. Margin Comparison for QQQ

Stock Price: $716.7
Option Symbol: QQQ280616C00745000
Option Expiry: 2028-06-16
Days to Expiration: 654 days
Strike Price: $745
Option Premium: $101.01
Live Delta: 0.6066
LEAPS Leverage: 4.3x
LEAPS Breakeven: $846.01 +18%
LEAPS Premium: 14.1%
Additional Greeks:
Gamma: 0.0017
Theta: -0.1052
Vega: 3.6927
Rho: 5.9528
Implied Volatility: N/A
Open Interest: 252
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Scenario Comparison

Initial Investment: $10,101.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
289 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$1075.05$28,844.86285.56%$9,460.7293.66%
25%$895.88$10,927.36108.18%$4,443.8243.99%
10%$788.37$176.861.75%$1,433.6814.19%
0%$716.7$-4,160.14-41.19%$-573.08-5.67%
-10%$645.03$-4,160.14-41.19%$-2,579.84-25.54%
-25%$537.53$-4,160.14-41.19%$-5,589.98-55.34%
-50%$358.35$-4,160.14-41.19%$-10,606.88-105.01%
Stock Move: 50%
New Price: $1075.05
Intrinsic Value: $33005
LEAPS Gain: $28,844.86
LEAPS ROI: 285.56%
Margin Gain: $9,460.72
Margin ROI: 93.66%
Stock Move: 25%
New Price: $895.88
Intrinsic Value: $15087.5
LEAPS Gain: $10,927.36
LEAPS ROI: 108.18%
Margin Gain: $4,443.82
Margin ROI: 43.99%
Stock Move: 10%
New Price: $788.37
Intrinsic Value: $4337
LEAPS Gain: $176.86
LEAPS ROI: 1.75%
Margin Gain: $1,433.68
Margin ROI: 14.19%
Stock Move: 0%
New Price: $716.7
Intrinsic Value: $0
LEAPS Gain: $-4,160.14
LEAPS ROI: -41.19%
Margin Gain: $-573.08
Margin ROI: -5.67%
Stock Move: -10%
New Price: $645.03
Intrinsic Value: $0
LEAPS Gain: $-4,160.14
LEAPS ROI: -41.19%
Margin Gain: $-2,579.84
Margin ROI: -25.54%
Stock Move: -25%
New Price: $537.53
Intrinsic Value: $0
LEAPS Gain: $-4,160.14
LEAPS ROI: -41.19%
Margin Gain: $-5,589.98
Margin ROI: -55.34%
Stock Move: -50%
New Price: $358.35
Intrinsic Value: $0
LEAPS Gain: $-4,160.14
LEAPS ROI: -41.19%
Margin Gain: $-10,606.88
Margin ROI: -105.01%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $10,101.00
Projected Stock Price (+25%): $895.88
LEAPS Gain: $10,927.36 | ROI: 108.18%
Margin Gain: $4,443.82 | ROI: 43.99%
LEAPS returned 146% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $10,101.00
Projected Stock Price (+50%): $1075.05
LEAPS Gain: $28,844.86 | ROI: 285.56%
Margin Gain: $9,460.72 | ROI: 93.66%
LEAPS returned 205% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $10,101.00
Projected Stock Price (-25%): $537.53
LEAPS Gain: $-4,160.14 | ROI: -41.19%
Margin Gain: $-5,589.98 | ROI: -55.34%
LEAPS lost 26% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $10,101.00
Projected Stock Price (-50%): $358.35
LEAPS Gain: $-4,160.14 | ROI: -41.19%
Margin Gain: $-10,606.88 | ROI: -105.01%
LEAPS lost 61% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2028-06-16 (654 days total)
Days Remaining After 1 Year: 289 days
Option Premium: $101.01
Initial Stock Price: $716.70
Strike Price: $745.00
Projected Stock Price (+25% in 1 Year): $895.88
Price Difference (Projected - Strike): $150.88
Total Capital Used: $10,101.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $15,087.50
Time Value Remaining: $5,940.86
Total LEAPS Value: $21,028.36
Initial LEAPS Cost: $10,101.00
Total LEAPS Gain: $10,927.36
Margin Gain Components (Sell After 1 Year):
Shares Bought: 28
Total Stock Cost: $20,067.60
Borrowed Amount: $9,966.60
Interest Paid: $573.08
Total Margin Gain: $4,443.82
LEAPS vs. Margin Comparison:
LEAPS ROI: 108.18%
Margin ROI: 43.99%
LEAPS Gain: $10,927.36
Margin Gain: $4,443.82
LEAPS Gain Advantage: +$6,483.54
LEAPS returned 146% 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.