OK to Buy KO Leaps +335% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 184.46%, Margin ROI = 42.44%
LEAPS are 335% more profitable than Margin.
LEAPS Premium = 9.97% of Stock Price.

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

No LEAPS found 24+ months out. Showing available 18+ months LEAPS.

LEAPS vs. Margin Comparison for KO

Stock Price: $78.25
Option Symbol: KO280121C00080000
Option Expiry: 2028-01-21
Days to Expiration: 619 days
Strike Price: $80
Option Premium: $7.8
Live Delta: 0.6188
LEAPS Leverage: 6.21x
LEAPS Breakeven: $87.8 +12.2%
LEAPS Premium: 10%
Additional Greeks:
Gamma: 0.0247
Theta: -0.0088
Vega: 0.3887
Rho: 0.6917
Implied Volatility: N/A
Open Interest: 1,451
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Scenario Comparison

Initial Investment: $780.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
254 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$117.38$3,395.07435.27%$702.7490.09%
25%$97.81$1,438.82184.46%$331.0542.44%
10%$86.08$265.0733.98%$108.0413.85%
0%$78.25$-342.43-43.90%$-40.64-5.21%
-10%$70.43$-342.43-43.90%$-189.31-24.27%
-25%$58.69$-342.43-43.90%$-412.33-52.86%
-50%$39.13$-342.43-43.90%$-784.01-100.51%
Stock Move: 50%
New Price: $117.38
Intrinsic Value: $3737.5
LEAPS Gain: $3,395.07
LEAPS ROI: 435.27%
Margin Gain: $702.74
Margin ROI: 90.09%
Stock Move: 25%
New Price: $97.81
Intrinsic Value: $1781.25
LEAPS Gain: $1,438.82
LEAPS ROI: 184.46%
Margin Gain: $331.05
Margin ROI: 42.44%
Stock Move: 10%
New Price: $86.08
Intrinsic Value: $607.5
LEAPS Gain: $265.07
LEAPS ROI: 33.98%
Margin Gain: $108.04
Margin ROI: 13.85%
Stock Move: 0%
New Price: $78.25
Intrinsic Value: $0
LEAPS Gain: $-342.43
LEAPS ROI: -43.90%
Margin Gain: $-40.64
Margin ROI: -5.21%
Stock Move: -10%
New Price: $70.43
Intrinsic Value: $0
LEAPS Gain: $-342.43
LEAPS ROI: -43.90%
Margin Gain: $-189.31
Margin ROI: -24.27%
Stock Move: -25%
New Price: $58.69
Intrinsic Value: $0
LEAPS Gain: $-342.43
LEAPS ROI: -43.90%
Margin Gain: $-412.33
Margin ROI: -52.86%
Stock Move: -50%
New Price: $39.13
Intrinsic Value: $0
LEAPS Gain: $-342.43
LEAPS ROI: -43.90%
Margin Gain: $-784.01
Margin ROI: -100.51%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $780.00
Projected Stock Price (+25%): $97.81
LEAPS Gain: $1,438.82 | ROI: 184.46%
Margin Gain: $331.05 | ROI: 42.44%
LEAPS returned 335% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $780.00
Projected Stock Price (+50%): $117.38
LEAPS Gain: $3,395.07 | ROI: 435.27%
Margin Gain: $702.74 | ROI: 90.09%
LEAPS returned 383% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $780.00
Projected Stock Price (-25%): $58.69
LEAPS Gain: $-342.43 | ROI: -43.9%
Margin Gain: $-412.33 | ROI: -52.86%
LEAPS lost 17% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $780.00
Projected Stock Price (-50%): $39.13
LEAPS Gain: $-342.43 | ROI: -43.9%
Margin Gain: $-784.01 | ROI: -100.51%
LEAPS lost 56% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2028-01-21 (620 days total)
Days Remaining After 1 Year: 255 days
Option Premium: $7.80
Initial Stock Price: $78.25
Strike Price: $80.00
Projected Stock Price (+25% in 1 Year): $97.81
Price Difference (Projected - Strike): $17.81
Total Capital Used: $780.00

LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $1,781.25
Time Value Remaining: $437.57
Total LEAPS Value: $2,218.82
Initial LEAPS Cost: $780.00
Total LEAPS Gain: $1,438.82

Margin Gain Components (Sell After 1 Year):
Shares Bought: 19
Total Stock Cost: $1,486.75
Borrowed Amount: $706.75
Interest Paid: $40.64
Total Margin Gain: $331.05

LEAPS vs. Margin Comparison:
LEAPS ROI: 184.46%
Margin ROI: 42.44%
LEAPS Gain: $1,438.82
Margin Gain: $331.05
LEAPS Gain Advantage: +$1,107.77
LEAPS returned 335% 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.