Hi all, I entered a very small position in some LEAPS for PM and BTI. I’ve been trading LEAPS for about 9 mon this now and generally am comfortable with high liquidity contracts, but this is the first time I’ve had positions where there is regularly 0 daily volume.
Other than the large bid-ask spread, are there there any special considerations for these kinds of contracts? Should I have avoided opening a position in the first place with barely any volume? Is the main catch basically that I need to factor in a significant % M2M loss when I close / roll due to illiquidity, even if the underlying has performed very well?