Sunday, October 18

LEAPS

VOO at $701.61· calls 365+ days out· cash at 4.5%· margin benchmark 9.0%

Expiry

Selected: $295 call · Jan 21 '28 · $419.00 per share. Pick another from the ladder below.

Capital

$41,900

vs $70,161 for 100 shares

Frees up

$28,261

40% of the share cost

Exposure

99 sh

1.7× per dollar

Max loss

$41,900

the whole premium, below $295

What the leverage costs

Time value

$1,239.00

1.8% of spot, over 1.3y

Dividends forgone

—

no yield data

Implied borrow rate

3.5%

cash earns 4.5% · margin 9.0%

Net carry

-$363.75

time value + dividends − interest earned

Above $295 this call actually beats 100 shares by a flat $363.75 — the interest on the $28,261 it frees up more than covers its time value and forgone dividends. And it stays ahead all the way down: below the strike its loss stops at the premium while the shares keep falling. On these numbers there is no price at which owning the shares wins — which usually means the market is pricing very little time value into this strike, so check the spread before believing it.

At expiry · Jan 21 '28

breakeven $714.00 · +1.8% from spot

Both lines include what a payoff diagram usually drops: dividends credited to the shares, and interest on the cash the call doesn’t tie up.

Strikes · Jan 21 '2889 of 139

Strike	Premium	Time value	Δ-shares	Borrow rate	Cost / exposure	Breakeven	P(ITM)
$295	$419.00	$12.39	99	3.5%	1.4%	$714.00+2%	44%
$300	$414.50	$12.89	99	3.6%	1.5%	$714.50+2%	44%
$305	$409.50	$12.89	99	3.5%	1.5%	$714.50+2%	45%
$310	$405.00	$13.39	99	3.6%	1.5%	$715.00+2%	45%
$315	$400.50	$13.89	99	3.7%	1.6%	$715.50+2%	45%
$320	$396.00	$14.39	99	3.7%	1.7%	$716.00+2%	45%
$325	$391.00	$14.39	98	3.7%	1.7%	$716.00+2%	45%
$330	$386.50	$14.89	98	3.7%	1.7%	$716.50+2%	45%
$335	$382.00	$15.39	98	3.8%	1.8%	$717.00+2%	45%
$340	$377.50	$15.89	98	3.9%	1.8%	$717.50+2%	45%
$345	$373.00	$16.39	98	4.0%	1.9%	$718.00+2%	45%
$350	$368.00	$16.39	98	3.9%	1.9%	$718.00+2%	45%
$355	$363.50	$16.89	98	4.0%	2.0%	$718.50+2%	45%
$360	$359.00	$17.39	98	4.0%	2.0%	$719.00+2%	45%
$365	$354.50	$17.89	98	4.1%	2.1%	$719.50+3%	45%
$370	$350.00	$18.39	97	4.2%	2.1%	$720.00+3%	45%
$375	$345.50	$18.89	97	4.2%	2.2%	$720.50+3%	45%
$380	$340.50	$18.89	97	4.2%	2.2%	$720.50+3%	45%
$385	$336.00	$19.39	97	4.2%	2.3%	$721.00+3%	45%
$390	$331.50	$19.89	97	4.3%	2.3%	$721.50+3%	45%
$395	$327.00	$20.39	97	4.3%	2.4%	$722.00+3%	45%
$400	$322.50	$20.89	97	4.4%	2.4%	$722.50+3%	45%
$405	$318.00	$21.39	96	4.4%	2.5%	$723.00+3%	45%
$410	$313.50	$21.89	96	4.5%	2.6%	$723.50+3%	45%
$415	$309.00	$22.39	96	4.5%	2.6%	$724.00+3%	45%
$420	$304.50	$22.89	96	4.6%	2.7%	$724.50+3%	45%
$425	$300.00	$23.39	96	4.6%	2.8%	$725.00+3%	45%
$430	$295.50	$23.89	96	4.7%	2.8%	$725.50+3%	45%
$435	$291.00	$24.39	95	4.7%	2.9%	$726.00+3%	45%
$440	$286.50	$24.89	95	4.8%	3.0%	$726.50+4%	45%
$445	$282.00	$25.39	95	4.8%	3.0%	$727.00+4%	45%
$450	$277.50	$25.89	95	4.8%	3.1%	$727.50+4%	45%
$455	$273.00	$26.39	95	4.9%	3.2%	$728.00+4%	45%
$460	$268.50	$26.89	94	4.9%	3.2%	$728.50+4%	46%
$465	$264.00	$27.39	94	5.0%	3.3%	$729.00+4%	46%
$470	$259.50	$27.89	94	5.0%	3.4%	$729.50+4%	46%
$475	$255.00	$28.39	94	5.0%	3.4%	$730.00+4%	46%
$480	$251.00	$29.39	93	5.2%	3.6%	$731.00+4%	45%
$485	$246.50	$29.89	93	5.2%	3.6%	$731.50+4%	45%
$490	$242.00	$30.39	93	5.2%	3.7%	$732.00+4%	45%
$495	$237.50	$30.89	92	5.3%	3.8%	$732.50+4%	45%
$500	$233.00	$31.39	92	5.3%	3.9%	$733.00+4%	45%
$505	$229.00	$32.39	92	5.4%	4.0%	$734.00+5%	45%
$510	$224.50	$32.89	91	5.5%	4.1%	$734.50+5%	45%
$515	$220.00	$33.39	91	5.5%	4.1%	$735.00+5%	45%
$520	$216.00	$34.39	91	5.6%	4.3%	$736.00+5%	45%
$525	$211.50	$34.89	90	5.6%	4.4%	$736.50+5%	45%
$530	$207.50	$35.89	90	5.8%	4.5%	$737.50+5%	45%
$535	$203.00	$36.39	90	5.8%	4.6%	$738.00+5%	45%
$540	$199.00	$37.39	89	5.9%	4.7%	$739.00+5%	45%
$545	$194.50	$37.89	89	5.9%	4.8%	$739.50+5%	45%
$550	$190.50	$38.89	88	6.0%	5.0%	$740.50+6%	45%
$555	$186.00	$39.39	88	6.1%	5.1%	$741.00+6%	45%
$560	$182.00	$40.39	87	6.2%	5.2%	$742.00+6%	45%
$565	$178.00	$41.39	87	6.3%	5.4%	$743.00+6%	44%
$570	$173.50	$41.89	86	6.3%	5.5%	$743.50+6%	44%
$575	$169.50	$42.89	86	6.4%	5.7%	$744.50+6%	44%
$580	$165.50	$43.89	85	6.5%	5.8%	$745.50+6%	44%
$585	$161.50	$44.89	85	6.6%	6.0%	$746.50+6%	44%
$590	$157.50	$45.89	84	6.7%	6.2%	$747.50+7%	44%
$595	$153.00	$46.39	83	6.7%	6.3%	$748.00+7%	44%
$600	$149.00	$47.39	83	6.8%	6.5%	$749.00+7%	44%
$605	$145.00	$48.39	82	6.9%	6.7%	$750.00+7%	43%
$610	$141.50	$49.89	81	7.1%	6.9%	$751.50+7%	43%
$615	$137.50	$50.89	81	7.2%	7.1%	$752.50+7%	43%
$620	$132.75	$51.14	80	7.1%	7.2%	$752.75+7%	43%
$625	$129.50	$52.89	79	7.3%	7.5%	$754.50+8%	43%
$630	$125.50	$53.89	78	7.4%	7.8%	$755.50+8%	42%
$635	$122.00	$55.39	78	7.6%	8.1%	$757.00+8%	42%
$640	$118.00	$56.39	77	7.7%	8.3%	$758.00+8%	42%
$645	$114.50	$57.89	76	7.8%	8.6%	$759.50+8%	42%
$650	$110.50	$58.89	75	7.9%	8.9%	$760.50+8%	41%
$655	$107.00	$60.39	74	8.1%	9.2%	$762.00+9%	41%
$660	$103.50	$61.89	73	8.2%	9.6%	$763.50+9%	41%
$665	$99.50	$62.89	72	8.3%	9.9%	$764.50+9%	40%
$670	$96.00	$64.39	71	8.4%	10.2%	$766.00+9%	40%
$675	$92.50	$65.89	70	8.6%	10.6%	$767.50+9%	40%
$680	$89.00	$67.39	69	8.7%	11.0%	$769.00+10%	39%
$685	$85.50	$68.89	68	8.9%	11.5%	$770.50+10%	39%
$690	$82.75	$71.14	67	9.1%	12.1%	$772.75+10%	38%
$695	$79.00	$72.39	66	9.2%	12.5%	$774.00+10%	38%
$700	$75.50	$73.89	64	9.4%	13.0%	$775.50+11%	38%
$705OTM	$72.50	$72.50	63	—	13.0%	$777.50+11%	37%
$710OTM	$69.00	$69.00	62	—	12.6%	$779.00+11%	37%
$715OTM	$66.00	$66.00	61	—	12.3%	$781.00+11%	36%
$720OTM	$63.00	$63.00	59	—	12.0%	$783.00+12%	36%
$725OTM	$60.00	$60.00	58	—	11.7%	$785.00+12%	35%
$730OTM	$57.00	$57.00	56	—	11.4%	$787.00+12%	35%
$735OTM	$54.00	$54.00	55	—	11.1%	$789.00+12%	34%

Borrow rateis the annualised cost of controlling the shares through the option, quoted against the capital it frees. It’s blank out of the money, where the call isn’t standing in for the shares at all. Cost / exposuredivides the same cost by the delta-weighted exposure it actually buys, so every strike is comparable — that’s the column to rank by.