OK to Buy QQQ Leaps +408% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 220.52%, Margin ROI = 43.41%
LEAPS are 408% more profitable than Margin.
LEAPS Premium = 10.73% of Stock Price.

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

LEAPS vs. Margin Comparison for QQQ

Stock Price: $702.25
Option Symbol: QQQ280616C00647000
Option Expiry: 2028-06-16
Days to Expiration: 591 days
Strike Price: $647
Option Premium: $75.38
Live Delta: 0.7481
LEAPS Leverage: 6.97x
LEAPS Breakeven: $722.38 +2.9%
LEAPS Premium: 10.7%
Additional Greeks:
Gamma: 0.0016
Theta: -0.1013
Vega: 2.8535
Rho: 6.3311
Implied Volatility: N/A
Open Interest: 2
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Scenario Comparison

Initial Investment: $7,538.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
226 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$1053.38$34,178.70453.42%$6,959.0992.32%
25%$877.81$16,622.45220.52%$3,272.2843.41%
10%$772.48$6,088.7080.77%$1,060.1914.06%
0%$702.25$-933.80-12.39%$-414.53-5.50%
-10%$632.03$-6,458.80-85.68%$-1,889.26-25.06%
-25%$526.69$-6,458.80-85.68%$-4,101.34-54.41%
-50%$351.13$-6,458.80-85.68%$-7,788.16-103.32%
Stock Move: 50%
New Price: $1053.38
Intrinsic Value: $40637.5
LEAPS Gain: $34,178.70
LEAPS ROI: 453.42%
Margin Gain: $6,959.09
Margin ROI: 92.32%
Stock Move: 25%
New Price: $877.81
Intrinsic Value: $23081.25
LEAPS Gain: $16,622.45
LEAPS ROI: 220.52%
Margin Gain: $3,272.28
Margin ROI: 43.41%
Stock Move: 10%
New Price: $772.48
Intrinsic Value: $12547.5
LEAPS Gain: $6,088.70
LEAPS ROI: 80.77%
Margin Gain: $1,060.19
Margin ROI: 14.06%
Stock Move: 0%
New Price: $702.25
Intrinsic Value: $5525
LEAPS Gain: $-933.80
LEAPS ROI: -12.39%
Margin Gain: $-414.53
Margin ROI: -5.50%
Stock Move: -10%
New Price: $632.03
Intrinsic Value: $0
LEAPS Gain: $-6,458.80
LEAPS ROI: -85.68%
Margin Gain: $-1,889.26
Margin ROI: -25.06%
Stock Move: -25%
New Price: $526.69
Intrinsic Value: $0
LEAPS Gain: $-6,458.80
LEAPS ROI: -85.68%
Margin Gain: $-4,101.34
Margin ROI: -54.41%
Stock Move: -50%
New Price: $351.13
Intrinsic Value: $0
LEAPS Gain: $-6,458.80
LEAPS ROI: -85.68%
Margin Gain: $-7,788.16
Margin ROI: -103.32%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $7,538.00
Projected Stock Price (+25%): $877.81
LEAPS Gain: $16,622.45 | ROI: 220.52%
Margin Gain: $3,272.28 | ROI: 43.41%
LEAPS returned 408% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $7,538.00
Projected Stock Price (+50%): $1053.38
LEAPS Gain: $34,178.70 | ROI: 453.42%
Margin Gain: $6,959.09 | ROI: 92.32%
LEAPS returned 391% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $7,538.00
Projected Stock Price (-25%): $526.69
LEAPS Gain: $-6,458.80 | ROI: -85.68%
Margin Gain: $-4,101.34 | ROI: -54.41%
LEAPS lost 57% more than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $7,538.00
Projected Stock Price (-50%): $351.13
LEAPS Gain: $-6,458.80 | ROI: -85.68%
Margin Gain: $-7,788.16 | ROI: -103.32%
LEAPS lost 17% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2028-06-16 (592 days total)
Days Remaining After 1 Year: 227 days
Option Premium: $75.38
Initial Stock Price: $702.25
Strike Price: $647.00
Projected Stock Price (+25% in 1 Year): $877.81
Price Difference (Projected - Strike): $230.81
Total Capital Used: $7,538.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $23,081.25
Time Value Remaining: $1,079.20
Total LEAPS Value: $24,160.45
Initial LEAPS Cost: $7,538.00
Total LEAPS Gain: $16,622.45
Margin Gain Components (Sell After 1 Year):
Shares Bought: 21
Total Stock Cost: $14,747.25
Borrowed Amount: $7,209.25
Interest Paid: $414.53
Total Margin Gain: $3,272.28
LEAPS vs. Margin Comparison:
LEAPS ROI: 220.52%
Margin ROI: 43.41%
LEAPS Gain: $16,622.45
Margin Gain: $3,272.28
LEAPS Gain Advantage: +$13,350.17
LEAPS returned 408% more gains than Margin.
LEAPS Risk to Reward Score
Good Risk to Reward
84/100
Base Performance Score: 80
Bonuses: 14
  • +7 (18-24 Month Expiration)
  • +7 (ITM Strike)
Penalties: 10
  • -10 (High Leverage)

Final Risk vs Reward Score: 84/100
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.