The PnL value in a PnL diagram usually rises or falls (or is a horizontally constant) when traced from initial spot to the lower and higher spot directions. The question is: can it also change its direction from rising to falling PnL, or vice-versa, in the same half side from the initial spot? Can such a PnL diagram exist? Any examples? Of course meaning the PnL at expiration, not before.
I used to track Morningstar PnL report via API. The API is already deprecated. AAPL - Apple Inc Financials & Balance Sheets - NASDAQ | Morningstar Alternatively, PnL is available at the SEC Edgar 10-K filings. It has all the historical record. In my opinion, PnL is a lagging indicator/flag. If it's downtrend, the share price already cratered. Analysts target is a responsive indicator e.g. AMD missed target by $1B and its share price got hammered.
@Peter8519, thx, but I was meaning offline PnL diagram, not realtime online one. Ie. like the following PnL diagram, and then finding programatically the Break/Even (B/E) points therein: https://www.elitetrader.com/et/thre...b-e-points-in-spot-range.370263/#post-5694389
You can make it do many things. What are you trying to accomplish? https://gyazo.com/71655d358b9d59844fda51c93d48b4ab
Matt, thx, indeed a very interesting PnL diagram! I just need to calculate (ie. to find) the nearest B/E point to both sides from given spot value. Of course there can exist in total 0, 1, or 2 B/E points that are nearest to the given spot. I need it inside my scanner for calculating a score for each candidate, where the distance to the B/E point in % will be part of the score; the bigger the distance the better the score gets, of course... As indicated this is just one of the many parts my score is made up of. Again, thx, it helps me to continue & advance my work...
Yes, we calculate breakevens and have a ranking system in our options scanner: https://gyazo.com/1850b7c164f422496f9316ed6490b347
I don't quite understand your question, but if you take a balanced butterfly (121), call or put, your choice, you can make any arbitrary payoff diagram by superposition.
Just study the PnL diagram Matt has posted. I mean such PnL diagrams where the PnL can also change direction within the left or right side from the initial spot... OTOH: I haven't verified it yet, maybe it's a case open for interpretation, b/c I'm only interested in the outcome if one closes the whole position at the shortest expiration... keeping initial IVs... Complicated shaet...
Caveat / Correction: above I said "the bigger the B/E distance the better", but this applies only conditionally in some cases, in other cases "the shorter the B/E distance the better" applies! For example in a ShortStraddle it is good if the B/E points are far off the initial spot (b/c one starts in plus), but in a LongStraddle it's exactly the opposite! The nearer the B/E points to the initial spot the better (b/c one starts in minus). Tricky sheat!