Boise, ID / USA
Posts: 9 since Apr 2015
Thanks Given: 3
Thanks Received: 1
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So I just started learning about options, and have been working with a paper money account on ThinkorSwim.
Seeing if someone could explain to me why, surprise... my options aren't worth what I am calculating they should be.
I attached a screenshot of the trade, which is on BBRY. The trade was a credit put spread. Stock price @ $10.27, bought the 9 strike @ (.05), sold the $10.50 strike .54. Should be an overall credit, and max profit of $.49.
From how I read the below trade, it seems the sold put is generating a cost (enclosed in brackets), and the purchased put generating positive. Shouldn't it be the other way around?
Below is a spreadsheet showing what I calculated the option to be worth for max profit/loss, and what it should be worth currently at a stock price of $10.16
Long Put Strike = cost of premium paid (calculated to be -.05)
Short Put value = Current stock price - Short Put Strike + Premium received. (calculated to be .15)
(Attached screenshot of spreadsheet)
First question is why the current value shows as a negative, and secondly why my profit shows as $1.50. Shouldn't my current profit be the same as the current market value (but not negative).
Lastly, why do my spreadsheet values not accurately reflect the options value.
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