matt0311 7:43 am on Friday, March 20, 2026
Tags: FuzzyLEAPs ( 130 )

#fuzzyleaps I am starting to…

#fuzzyleaps
I am starting to see the disadvantage to use XSP: it’s poor liquidity. You have the XSP moving down 3 to 5 points and the IAB software shows that the price for the leap went down! although it is heavily in negative Deltas. Even Tastytrade shows only very slight moves up. Taxing.

bikeeagle1 8:28 am on Friday, March 20, 2026

I’ve noticed the same thing at Fidelity, when looking at the current value of the SPX LEAPs. In Fidelity’s case, it is because they show the value based on the Bid, not the Mid. TOS shows the value based on the Mark (aka Mid), so it’s a little better. SPX LEAP options have pretty low liquidity also, due to being so far out in time.

Having said that, I think that @fuzzballl has said that he doesn’t concern himself much with what trading software shows as the value of the LEAPs. He is more focused on bringing in premium, and recouping the cost of the LEAPs as quickly as possible.

Since the LEAPs are many years in the future, it doesn’t matter much what software says they are worth at any moment in time this far ahead. I think @fuzzballl‘s analogy of thinking of them as rental houses makes sense. Rental houses have low liquidity also, and their present value is hard to calculate, but that’s not the focus. It’s all about rental income.