EXAMPLE
LEAPS call
Illustrative example
- Underlying
- $100.00
- Entry debit before fees
- $2,650
- Breakeven
- $106.51
- Max profit
- Not capped
- Max loss
- -$2,650.65
- Expires
- 2027-12-17
Premium strategy tool
LEAPS Options Screener & Long-Call Research
LEAPS are long-dated options, generally with expirations a year or more away. A deep in-the-money long call can behave more like stock exposure while committing less capital than 100 shares.
The LEAPS tool breaks the call price into intrinsic and extrinsic value and shows leverage, so you can judge what you are paying for time.
Product preview
The chart below is the same payoff component used inside the platform, run on the hypothetical example described later on this page.
LEAPS call
One long-dated call: the premium paid is the most the position can lose.
Illustrative example
- Buy$80 call, Dec 2027
Profit zoneLoss zoneStock priceBreakeven
- Example stock
- $100.00
- Entry debit before fees
- $2,650
- Breakeven
- $106.51
- Max profit
- Not capped
- Max loss
- -$2,650.65
- Evaluated at
- Expiration
Includes $0.65 entry commission per option contract. Exit, exercise/assignment fees and taxes are excluded.
Payoff scenario
Illustrative example, read-only. Hypothetical inputs run through TradingSignalAI's payoff model.
Illustrative example
- Hypothetical underlying
- $100.00
- Entry debit before fees
- $2,650 ($26.50/share)
- Position · standard 100-share contracts
- Buy one $80 call (2027-12-17)
Expiration payoff
1 structure · 100 shares per option leg · expires 2027-12-17
Hover, touch, or focus the chart and use arrow keys to read P/L at a price.
- Shaded above $0: profit
- Shaded below $0: loss
- Solid line: P/L at expiration
- Dashed line: reference price
- Circle: break-even
- Dotted line: strike (values below)
- Break-even
- $106.51
- Strikes
- $80.00
- Payoff profit cap
- Uncapped
- Max loss
- $2,650.65
The chart shows underlying prices from $65.42 to $121.09 only. Losses or gains outside this window can be larger; the window's lowest and highest points are not maximum risk.
Includes $0.65 entry commission per option contract. Exit, exercise/assignment fees and taxes are excluded.
Move the pointer or focus the chart and use the left and right arrow keys to read profit or loss at each stock price. These are not live quotes or signals.
Metrics in pictures
Days to expiration
How the time horizon changes what you are comparing.
Illustrative example
0 DTE
Expiration day. Value is almost all intrinsic, and assignment can happen quickly.
7 DTE
Weekly. Time value is small and shrinks fast, and returns per day look large.
30 DTE
Monthly. A common window for comparing premium against time at risk.
45 DTE
Slower daily decay, more time for the stock to move against a position.
90 DTE
Quarterly. Premiums are larger in dollars but spread across more days.
365+ DTE
LEAPS range. Mostly time value early on, and used for long exposure, not quick income.
Descriptions are general tendencies. The scanner normalizes returns per day so different expirations can be viewed together.
Delta: directional exposure
Select a delta to see what it means for one call contract.
Illustrative example
Out of the money, delta 0.30
Moderate sensitivity. Sold options here collect more premium than at 0.15 and are more likely to finish in the money.
One standard contract has about 30 shares of price exposure: roughly $30.00 per small $1 stock move, or $0.30 per quoted share, with other inputs held constant.
Delta is a model sensitivity, not a probability forecast. Values shown are examples, not quotes.
How the leaps tool works
- The finder reviews long-dated calls by delta and liquidity.
- Each result shows ask, intrinsic value, extrinsic value and leverage when available.
- The chart plots expiration P/L for the long call.
- Results are research inputs. Time decay and volatility change values well before expiration.
Metrics you will see
| Metric | Meaning |
|---|---|
| Ask price | What buying the call costs per share, times 100 per contract. |
| Intrinsic value | Stock price minus strike, if positive. |
| Extrinsic value | Option price minus intrinsic value. |
| Breakeven | Strike plus premium paid at expiration. |
| Leverage | Share exposure relative to capital spent. |
Worked example
Hypothetical example for a stock trading at $100. Not a quote, a recommendation or a result. Buy a December 2027 $80 call at $26.50 ask.
| Item | Calculation |
|---|---|
| Capital at risk | $26.50 x 100 = $2,650 (maximum loss, before fees) |
| Intrinsic value | $100 - $80 = $20.00 |
| Extrinsic value | $26.50 - $20.00 = $6.50 |
| Breakeven at expiration | $80 + $26.50 = $106.50 |
| Capital versus 100 shares | $2,650 / $10,000 = 26.5% |
A $100 stock must finish above $106.50 at expiration to profit, though the option may show gains earlier if the stock rises. The $6.50 extrinsic value decays toward zero.
Risks to understand
- You can lose the entire premium paid.
- Leverage cuts both ways: a given percentage fall in the stock can produce a larger percentage loss in the call.
- Extrinsic value decays and depends on volatility.
- Long-dated contracts can have wider spreads and lower liquidity.
Access
Strategy tools are part of Premium. A Free account can record holdings and cash and browse universe research. Registration alone is not a Premium subscription.
Eligible new customers can begin a 7-day Premium trial. A payment method is required, and the selected plan bills automatically at the end of the trial unless canceled. Registration alone is not a Premium subscription.
Frequently asked questions
Learn more
- LEAPS Calls: Intrinsic Value, Leverage & RiskUnderstand long-dated call options, delta, intrinsic and extrinsic value. Compare capital exposure and the risk of losing the entire option premium.
- Extrinsic Value: Time Value in OptionsCalculate an option's extrinsic value and understand time decay, volatility and why exercising a long-dated call can forfeit remaining time value.
- Intrinsic Value: Calls, Puts & MoneynessCalculate call and put intrinsic value with simple formulas and examples. Distinguish immediate exercise value from the option's quoted market premium.
- Options Delta: Sensitivity, Not a GuaranteeLearn what delta measures, how call and put deltas differ, and why a delta-based probability estimate is not a guaranteed assignment or profit forecast.
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Research the trade before you place it
Create a free account to record holdings and cash and browse universe research. Premium adds the strategy tools. Eligible new customers can start a 7-day Premium trial; a payment method is required and the plan bills automatically unless canceled. Registration alone is not a Premium subscription.