STC
Stewart Information Services Corporation
stock NYSE

Let’s use a real example. I bought 8 GOOG $150 C leaps expiring Jan 15 2027 while google was trading around $198. I got control of 800 shares for around $50k. If I bought shares it would have cost me $158,400. So here goes: 198/62.50 = 3.17 at an .80 delta is just over 2.5x leverage. I rode it up until GOOG hit the $250 mark and STC for a profit of $100 per share -62.50 in premium paid = $37.50 per share x 800 = $30k. So I made $30k from a $50k investment in a few months for a 60% gain. Now if I bought 800 shares for $158,400 I would have realized only a 19% gain and would have had to use WAY more capital. Buying shares with the same $50k invested would have only bought me 253 shares x $50 increase in share price to equal $12,650 in profit or 25%. Now they’re all good returns granted, but I’ll take the 60% every time.
Now keep in mind I actually made more than that, it was closer to $40k. The numbers above only reflect the intrinsic value whereas having leaps that still had over a year until expiration there was a TON of extrinsic value left.

Let’s use a real example. I bought 8 GOOG $150 C leaps expiring Jan 15 2027 while google was trading around $198. I got control of 800 shares for around $50k. If I bought shares it would have cost me $158,400. So here goes: 198/62.50 = 3.17 at an .80 delta is just over 2.5x leverage. I rode it up until GOOG hit the $250 mark and STC for a profit of $100 per share -62.50 in premium paid = $37.50 per share x 800 = $30k. So I made $30k from a $50k investment in a few months for a 60% gain. Now if I bought 800 shares for $158,400 I would have realized only a 19% gain and would have had to use WAY more capital. Buying shares with the same $50k invested would have only bought me 253 shares x $50 increase in share price to equal $12,650 in profit or 25%. Now they’re all good returns granted, but I’ll take the 60% every time.
Now keep in mind I actually made more than that, it was closer to $40k. The numbers above only reflect the intrinsic value whereas having leaps that still had over a year until expiration there was a TON of extrinsic value left.

STC 5x RGTI 25p @ 2.17