Diversification with LEAPS
LEAPS can reduce the amount of capital needed to trade. When comparing buying a LEAP or purchasing the underlying issue alone, LEAPS create substantial savings.
| Examples | ||||
| Stock: | Coca Cola | Stock: | IBM | |
| Trading Price: | $50.00 | Trading Price: | $99.50 | |
| Cost of 100 Shares: | $5,000 | Cost of 100 Shares: | $9,950 | |
| 50 LEAP Call: | $420 | 100 LEAP Call: | $1,160 | |
| LEAPS Cost Savings: | 91% | LEAPS Cost Savings | 88% | |
| Stock: | Amazon.com | Stock: | Microsoft | |
| Trading Price: | $13.49 | Trading Price: | $56.37 | |
| Cost of 100 Shares: | $1,349 | Cost of 100 Shares: | $5,637 | |
| 15 LEAP Call: | $490 | 60 LEAP Call: | $860 | |
| LEAP Cost Savings: | 63% | LEAP Cost Savings: | 84% | |
| Stock: | Intel | Stock: | Cisco | |
| Trading Price: | $30.29 | Trading Price: | $16.68 | |
| Cost of 100 Shares: | $3,029 | Cost of 100 Shares: | $1,668 | |
| 30 LEAP Call: | $760 | 60 LEAP Call: | $550 | |
| LEAP Cost Savings: | 75% | LEAP Cost Savings: | 67% | |
| Stock: | Walmart | Stock: | Boeing | |
| Trading Price: | $59.37 | Trading Price: | $49.22 | |
| Cost of 100 Shares: | $5,937 | Cost of 100 Shares: | $4,922 | |
| 30 LEAP Call: | $710 | 60 LEAP Call: | $760 | |
| LEAP Cost Savings: | 88% | LEAP Cost Savings: | 84% | |
