I have a new guy question. I bought a SPY LEAP (expires early summer of 26) during the tariff drop in the spring that at least for now is doing well almost 300% so far. There is 2 months difference between the 12 month mark and the exp date and all things equal and a same continued upward growth, l I would like to try to sell after the 12 months to keep the capital gains lower. If it continues to grow should I have any concern about liquidity given it is /will be deep ITM when it gets time to sell?
Posted by kmnunn98
3 Comments
Absolutely not. Something like SPY will never have liquidity issues.
There are always deep ITM LEAPS buyers. Like myself 🙂
Also, it’s always LEAPS. Singular is not LEAP 😉
probably the most liquid option with tight spread..no need to worry
You will never have liquidity issues in the SPY options market
You will however face larger spreads on those LEAPs as MMs will widen the bid/ask for those deep ITM options