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% |
|
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