MikeL 10:32 am on Wednesday, May 6, 2026

SPX Leaps

I am curios if you have a plan for dealing with the roll up of the LEAPs.
Apparently SPX is going to 7800 and it would be easy to run out of cash for the rolls. 🙂

fuzzballl 10:37 am on Wednesday, May 6, 2026

I’ve chased it all the way up. Going to let today’s get down to almost worthless and close them. Maybe not be quite as aggressive selling next few days and see what happens. Cash for rolling is ok for me right now in fact I did roll up to 7300 today.

Another option is to close everything and book all the profits and reset in a much smaller size if cash for rolling is an issue but I’m not planning on that because….2030 is a long way off! 🙂 🙂 🙂
bikeeagle1 11:25 am on Wednesday, May 6, 2026

@MikeL

Good question! What I do is to plan for several LEAP rollups in advance, and to carry enough cash to cover them.

For example, right now my cost per LEAP (including rollups already done) is $76,032. But when I bought each LEAP, I allocated $100,000 to each “rental house,” so I knew I could cover several rollups before I needed to start spending premium received to do them.

My cost for today’s 100-point rollup was $2,700. So if I have $100,000 allocated per LEAP, subtracting the $76,032 already tied up in the LEAPs, that leaves $23,968 in cash per LEAP. Assuming future rollups have a similar cost to today’s, then $23,968 divided by $2,700 equals 8.87 rollups before my $100,000 is fully allocated.

On top of the original allocation to my 3 LEAPs, I have also accumulated $93,899 in premium so far (or $31,299 per LEAP), with a lot more coming long before I reach the limit of the original $100k allocation per LEAP.

8 more rollups would imply SPX up around 8100 (a 10.35% gain from where we are now), which will certainly happen someday, but not likely in a straight line. For now, I’m hoping that I will have my total cost of the LEAPs recovered in premium received long before we get up there.