OK to Buy KO Leaps +211% Better

Based on +25% stock price in 1 year:
LEAPS ROI = 136.98%, Margin ROI = 44.08%
LEAPS are 211% more profitable than Margin.
LEAPS Premium = 12.56% of Stock Price.

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

LEAPS vs. Margin Comparison for KO

Stock Price: $93.98
Option Symbol: KO290119C00097500
Option Expiry: 2029-01-19
Days to Expiration: 808 days
Strike Price: $97.5
Option Premium: $11.8
Live Delta: 0.6407
LEAPS Leverage: 5.1x
LEAPS Breakeven: $109.3 +16.3%
LEAPS Premium: 12.6%
Additional Greeks:
Gamma: 0.0155
Theta: -0.0113
Vega: 0.5231
Rho: 1.0625
Implied Volatility: N/A
Open Interest: 52
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Scenario Comparison

Initial Investment: $1,180.00
Exit Strategy: Sell After 1 Year
LEAPS Gain = Intrinsic Value + Time Value
443 Time Value Days Remaining
Stock MoveNew PriceLEAPS GainLEAPS ROIMargin GainMargin ROI
50%$140.97$3,965.86336.09%$1,107.5093.86%
25%$117.48$1,616.36136.98%$520.1344.08%
10%$103.38$206.6617.51%$167.7014.21%
0%$93.98$-381.14-32.30%$-67.25-5.70%
-10%$84.58$-381.14-32.30%$-302.20-25.61%
-25%$70.49$-381.14-32.30%$-654.62-55.48%
-50%$46.99$-381.14-32.30%$-1,242.00-105.25%
Stock Move: 50%
New Price: $140.97
Intrinsic Value: $4347
LEAPS Gain: $3,965.86
LEAPS ROI: 336.09%
Margin Gain: $1,107.50
Margin ROI: 93.86%
Stock Move: 25%
New Price: $117.48
Intrinsic Value: $1997.5
LEAPS Gain: $1,616.36
LEAPS ROI: 136.98%
Margin Gain: $520.13
Margin ROI: 44.08%
Stock Move: 10%
New Price: $103.38
Intrinsic Value: $587.8
LEAPS Gain: $206.66
LEAPS ROI: 17.51%
Margin Gain: $167.70
Margin ROI: 14.21%
Stock Move: 0%
New Price: $93.98
Intrinsic Value: $0
LEAPS Gain: $-381.14
LEAPS ROI: -32.30%
Margin Gain: $-67.25
Margin ROI: -5.70%
Stock Move: -10%
New Price: $84.58
Intrinsic Value: $0
LEAPS Gain: $-381.14
LEAPS ROI: -32.30%
Margin Gain: $-302.20
Margin ROI: -25.61%
Stock Move: -25%
New Price: $70.49
Intrinsic Value: $0
LEAPS Gain: $-381.14
LEAPS ROI: -32.30%
Margin Gain: $-654.62
Margin ROI: -55.48%
Stock Move: -50%
New Price: $46.99
Intrinsic Value: $0
LEAPS Gain: $-381.14
LEAPS ROI: -32.30%
Margin Gain: $-1,242.00
Margin ROI: -105.25%

Equal Capital Projection


Based on +25% stock price in 1 year.
Total Capital Used: $1,180.00
Projected Stock Price (+25%): $117.48
LEAPS Gain: $1,616.36 | ROI: 136.98%
Margin Gain: $520.13 | ROI: 44.08%
LEAPS returned 211% more gains than Margin.

Based on +50% stock price in 1 year.
Total Capital Used: $1,180.00
Projected Stock Price (+50%): $140.97
LEAPS Gain: $3,965.86 | ROI: 336.09%
Margin Gain: $1,107.50 | ROI: 93.86%
LEAPS returned 258% more gains than Margin.

Based on -25% stock price in 1 year.
Total Capital Used: $1,180.00
Projected Stock Price (-25%): $70.49
LEAPS Gain: $-381.14 | ROI: -32.3%
Margin Gain: $-654.62 | ROI: -55.48%
LEAPS lost 42% less than Margin.

Based on -50% stock price in 1 year.
Total Capital Used: $1,180.00
Projected Stock Price (-50%): $46.99
LEAPS Gain: $-381.14 | ROI: -32.3%
Margin Gain: $-1,242.00 | ROI: -105.25%
LEAPS lost 69% less than Margin.
Power User Breakdown
Based on +25% stock price in 1 year.
Contract Expiration: 2029-01-19 (809 days total)
Days Remaining After 1 Year: 444 days
Option Premium: $11.80
Initial Stock Price: $93.98
Strike Price: $97.50
Projected Stock Price (+25% in 1 Year): $117.48
Price Difference (Projected - Strike): $19.98
Total Capital Used: $1,180.00
LEAPS Gain Components (Sell After 1 Year):
Intrinsic Value: $1,997.50
Time Value Remaining: $798.86
Total LEAPS Value: $2,796.36
Initial LEAPS Cost: $1,180.00
Total LEAPS Gain: $1,616.36
Margin Gain Components (Sell After 1 Year):
Shares Bought: 25
Total Stock Cost: $2,349.50
Borrowed Amount: $1,169.50
Interest Paid: $67.25
Total Margin Gain: $520.13
LEAPS vs. Margin Comparison:
LEAPS ROI: 136.98%
Margin ROI: 44.08%
LEAPS Gain: $1,616.36
Margin Gain: $520.13
LEAPS Gain Advantage: +$1,096.23
LEAPS returned 211% 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.