I have 100 shares of stock X which I am very long-term bullish on, and lately I've been considering selling those 100 shares and buying a LEAP for as far out as possible instead. The furthest I can buy expires in January 2020.

But I'm not positive that if the stock went up $100 between now and January 2020, that I would make the same amount as I would just owning my 100 shares.

How can I calculate it to be sure? I know the option greeks but don't they change over time? Or is it that once you've bought one, they stay the same for the duration of ownership? Do I need to pull out some Black-Scholes for this?

For instance, if I own 100 shares and the stock moves up $100, I gain $10,000 (100 x 100). But if I owned a single LEAP, would I have gained $10,000? I suppose it depends on the delta....see, here's where I get stuck. I don't know.


1 Answer 1


The delta matters, how far in the money or out the money. you should really use a calculator that shows you projections.

I'm a fan of Thinkorswim's platform for simulating options PnL

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