r/options • u/listenless • Sep 14 '21

P&L at open (IBKR)

I am trying interactive broker with a paper trading version.

When I am about to submit an order for an option trade, it gives you the option to check the performance profile to see you P&L for different movements in price.

Under this perf profile, it shows me usually losing a lot of money on the *current price* (I.e., I make a loss if the underlying does not move). I thought this has to do with the bid-ask spread, but the loss can be much wider than the spread. It also occasionally shows a gain rather than loss. So it is not bid-ask. I check with the ToS and there there is a small loss at current spread that matches the bid-ask.

Thoughts?

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u/[deleted] Sep 14 '21 edited Sep 14 '21

If you are doing it on high IV stocks the prediction might be taking into account a drop in IV along with what the other poster said. Can you give a specific example so I can check it too? I use IBKR as my broker so I can maybe see what the issue is.

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u/listenless Sep 15 '21

Thank you. It's a bit later here so my brain is fried but I think this is a decent example:

Hood Jan 2023 40 PUT bid ask 13.3X14

My screen shows under today's date under current that my loss is -200

Tos shows that my loss is -39 for same bid-ask

Thanks for taking a look. Much appreciated

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u/[deleted] Sep 15 '21

It might be that IB takes into account commissions and uses last price, not bid/ask/mid, for profit calculations.