Do options spread trades immediately show negative?

Discussion in 'Options' started by qwertyjjj, Feb 13, 2020 at 7:00 AM.

  1. qwertyjjj

    qwertyjjj

    Although the money from a spread is deposited to your account, do spread trades normally show negative immediately that gets closer to zero until expiry?
    Let's say you sell a call spread. I would have thought that it would decrease in value the closer price is too the spread and increase the further away?
     
  2. My trades always show immediate losses! :p
     
    FriskyCat likes this.
  3. guru

    guru


    Assuming it’s a credit spread:
    No, only a bit of slippage that you overpaid due to bid/ask spread will show as negative unrealized gain/loss initially.
    Other than that, you receive an initial credit but it’s not a loss nor profit.
    If it’s a winner then both its value and your P&L will be increasing over time because you can sell it back for a little profit. If you paid -$3 then you may be able to “sell” it back at a higher value like -$2, thus making $1 profit.
     
  4. Bekim

    Bekim

    usually, unless you are able to fill better than the mid