hello i have attached my portfolio as for today 20/09/18 and my question is it correct to calculate the losses for the day of EXPIRY not as what the contracts are worth in this manner i have : 1 ES @ 2942 hedged by a put 2940 = 2 points 1 put 2895 and one selling at 2905 = 10 points 1 put 2870 and selling at 2865 = 5 points total points 17 * 50 = 850 and to add the cost of all the contracts? is it right?
No -- even accounting for entry' pricing, you'd be way screwed. For example, you bought the 2870 put (value at expiration = 0¢) and sold the 2865 put (value at expiration = 0¢) but your accounting has their spread value at $5. (or $2.50, or whatever...) BUT YOU NEVER SAW THAT $FIVE DOLLARS. so, it's not a loss to your account net liquidation (which is THE ONLY THING that matters...) (FWIW, on the other side of things, your sold spread (puts at 2905/2895) did not *earn* you $ten dollars, either, right?) You had some exposure, though: 1 put (sold or bought? would have to be sold to be exposure for 2940 pts at 2940. (See why?) 10 pts at 2905/2895 0pts at 2870/2865. Busy busy busy! But, you'd best get this accounting down TODAY. Net liq. is all that matters. Actual risk will affect net liq. BE SAFE.