OK to Buy KO Leaps +334% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 187.08%, Margin ROI = 43.1%
LEAPS are 334% more profitable than Margin.
LEAPS Premium = 10.82% of Stock Price.

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

LEAPS vs. Margin Comparison for KO

Stock Price: $66.53
Option Symbol: KO280121C00067500
Option Expiry: 2028-01-21
Days to Expiration: 852 days
Strike Price: $67.5
Option Premium: $7.2
Live Delta: 0.6608
LEAPS Leverage: 6.11x
LEAPS Breakeven: $74.7 +12.3%
LEAPS Premium: 10.8%
Additional Greeks:
Gamma: 0.0285
Theta: -0.006
Vega: 0.3723
Rho: 0.8591
Implied Volatility: N/A
Open Interest: 69
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Scenario Comparison

Initial Investment: $720.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
487 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$99.8$3,010.23418.09%$659.6391.62%
25%$83.16$1,346.98187.08%$310.3543.10%
10%$73.18$349.0348.48%$100.7814.00%
0%$66.53$-219.27-30.45%$-38.93-5.41%
-10%$59.88$-219.27-30.45%$-178.65-24.81%
-25%$49.9$-219.27-30.45%$-388.22-53.92%
-50%$33.27$-219.27-30.45%$-737.50-102.43%
Stock Move: 50%
New Price: $99.8
Intrinsic Value: $3229.5
LEAPS Gain: $3,010.23
LEAPS ROI: 418.09%
Margin Gain: $659.63
Margin ROI: 91.62%
Stock Move: 25%
New Price: $83.16
Intrinsic Value: $1566.25
LEAPS Gain: $1,346.98
LEAPS ROI: 187.08%
Margin Gain: $310.35
Margin ROI: 43.10%
Stock Move: 10%
New Price: $73.18
Intrinsic Value: $568.3
LEAPS Gain: $349.03
LEAPS ROI: 48.48%
Margin Gain: $100.78
Margin ROI: 14.00%
Stock Move: 0%
New Price: $66.53
Intrinsic Value: $0
LEAPS Gain: $-219.27
LEAPS ROI: -30.45%
Margin Gain: $-38.93
Margin ROI: -5.41%
Stock Move: -10%
New Price: $59.88
Intrinsic Value: $0
LEAPS Gain: $-219.27
LEAPS ROI: -30.45%
Margin Gain: $-178.65
Margin ROI: -24.81%
Stock Move: -25%
New Price: $49.9
Intrinsic Value: $0
LEAPS Gain: $-219.27
LEAPS ROI: -30.45%
Margin Gain: $-388.22
Margin ROI: -53.92%
Stock Move: -50%
New Price: $33.27
Intrinsic Value: $0
LEAPS Gain: $-219.27
LEAPS ROI: -30.45%
Margin Gain: $-737.50
Margin ROI: -102.43%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $720.00
Projected Stock Price (+25%): $83.16
LEAPS Gain: $1,346.98 | ROI: 187.08%
Margin Gain: $310.35 | ROI: 43.1%
LEAPS returned 334% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $720.00
Projected Stock Price (+50%): $99.8
LEAPS Gain: $3,010.23 | ROI: 418.09%
Margin Gain: $659.63 | ROI: 91.62%
LEAPS returned 356% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $720.00
Projected Stock Price (-25%): $49.9
LEAPS Gain: $-219.27 | ROI: -30.45%
Margin Gain: $-388.22 | ROI: -53.92%
LEAPS lost 44% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $720.00
Projected Stock Price (-50%): $33.27
LEAPS Gain: $-219.27 | ROI: -30.45%
Margin Gain: $-737.50 | ROI: -102.43%
LEAPS lost 70% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2028-01-21 (853 days total)
Days Remaining After 1 Year: 488 days
Option Premium: $7.20
Initial Stock Price: $66.53
Strike Price: $67.50
Projected Stock Price (+25% in 1 Year): $83.16
Price Difference (Projected - Strike): $15.66
Total Capital Used: $720.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $1,566.25
Time Value Remaining: $500.73
Total LEAPS Value: $2,066.98
Initial LEAPS Cost: $720.00
Total LEAPS Gain: $1,346.98
Margin Gain Components (Sell After 1 Year):
Shares Bought: 21
Total Stock Cost: $1,397.13
Borrowed Amount: $677.13
Interest Paid: $38.93
Total Margin Gain: $310.35
LEAPS vs. Margin Comparison:
LEAPS ROI: 187.08%
Margin ROI: 43.10%
LEAPS Gain: $1,346.98
Margin Gain: $310.35
LEAPS Gain Advantage: +$1,036.63
LEAPS returned 334% more gains than Margin.
LEAPS Risk to Reward Score
Good Risk to Reward
90/100
Base Performance Score: 80
Bonuses: 20
  • +15 (24+ Month Expiration)
  • +5 (ATM Strike)
Penalties: 10
  • -10 (High Leverage)

Final Risk vs Reward Score: 90/100
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.