Option Tracker
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4 min read

P&L Tracking Guide

Understanding profit and loss calculations, break-even tracking, and how live pricing updates your P&L.

Option Tracker calculates your profit and loss in real-time as prices change. This guide explains how P&L works for different trade types and how to interpret the numbers.

P&L Display Format

All P&L displays show both dollar amount and percentage:

+$245 (+12.5%) or -$120 (-8.3%)

  • Green = Profit
  • Red = Loss
  • Percentage is based on your entry cost

Unrealized vs Realized P&L

Unrealized P&L

For open trades, unrealized P&L shows your current profit/loss if you closed right now:

Unrealized P&L = (Current Price - Entry Price) × Contracts × 100

For sold options (negative premium), the calculation inverts - you profit when price decreases.

Realized P&L

When you close a trade, the P&L becomes "realized" - it's locked in as actual profit or loss:

Realized P&L = (Closing Price - Entry Price) × Contracts × 100 - Fees

Realized P&L appears in your total profit calculations and analytics.

Break-Even Price

Every trade shows its break-even price - the stock price where you neither profit nor lose.

Long Call Break-Even

Break-Even = Strike + Premium Paid

Example: You buy a $185 call for $3.00

  • Break-even = $185 + $3 = $188
  • Stock must rise above $188 for profit

Long Put Break-Even

Break-Even = Strike - Premium Paid

Example: You buy a $180 put for $2.50

  • Break-even = $180 - $2.50 = $177.50
  • Stock must fall below $177.50 for profit

Short Put Break-Even

Break-Even = Strike - Premium Received

Example: You sell a $175 put for $2.00

  • Break-even = $175 - $2 = $173
  • You profit if stock stays above $173

Short Call (Covered Call) Break-Even

For covered calls, the break-even relates to your stock cost basis:

Effective Cost Basis = Stock Cost - Premium Received

Example: Stock at $180, you sell a $185 call for $3.00

  • Your effective cost basis = $180 - $3 = $177
  • You're protected down to $177

Reading Break-Even Display

The trade card shows:

  • BE: $188.45 - Your break-even price
  • +2.3% to BE - Stock needs to rise 2.3% to reach break-even
  • Above BE by $3.50 - Stock is $3.50 above break-even (profitable)

Color coding:

  • Green = You're on the profitable side
  • Red = Stock needs to move to reach break-even

Trade Thread P&L

For the wheel strategy, Option Tracker tracks P&L across the entire thread:

  1. Cash-Secured Put - Sell put, collect premium
  2. Assignment - Get assigned shares, basis adjusted by premium
  3. Covered Call - Sell call on shares, collect more premium
  4. Called Away or Continue - Cycle repeats

The thread view shows:

  • Total premium collected
  • Adjusted cost basis
  • Combined P&L for the entire position lifecycle

P&L Scenarios

Profitable Long Call

| Event | P&L Impact | |-------|------------| | Buy $180 call for $5.00 | -$500 initial cost | | Stock rises, call now $8.00 | +$300 unrealized | | Sell to close at $8.00 | +$300 realized |

Profitable Covered Call

| Event | P&L Impact | |-------|------------| | Own stock at $175 | (basis) | | Sell $180 call for $2.00 | +$200 premium | | Expires worthless | +$200 realized | | Keep shares, repeat | Ongoing income |

Assignment on Cash-Secured Put

| Event | P&L Impact | |-------|------------| | Sell $100 put for $2.00 | +$200 premium | | Stock falls to $95 | Option is ITM | | Get assigned 100 shares at $100 | Cost basis = $98 (strike - premium) | | Stock recovers to $102 | +$400 unrealized on shares |

How Live Pricing Updates P&L

When you refresh prices:

  1. App fetches current option prices
  2. Unrealized P&L recalculates for all open trades
  3. Dashboard totals update
  4. Strategy values update

The "Last updated" timestamp shows when prices were last refreshed.

P&L on Expired Options

When options expire:

OTM at Expiration

The option is worthless:

  • Long options: You lose 100% of premium paid
  • Short options: You keep 100% of premium received

ITM at Expiration

The option settles at intrinsic value:

Intrinsic Value (Call) = Stock Price - Strike
Intrinsic Value (Put) = Strike - Stock Price

For example, a $180 call with stock at $185 settles at $5.00.

Tips for Tracking P&L

  1. Refresh regularly - During market hours, refresh to see current values

  2. Check break-even - Know your break-even to make roll decisions

  3. Use thread view - For wheel trades, look at the entire thread P&L

  4. Filter by P&L - Sort trades by P&L to see winners and losers

  5. Review analytics - The Analytics page shows win rate, average return, and more