Percent Calc Problem

Discussion in 'Options' started by earth_imperator, May 25, 2022.

  1. easymon1

    easymon1

    You didn't label your answer... gott have them units on there.
    if a short position is in the reds, say $-200, and then makes some gains so that now the position is worth $-100, then how much is this last PL change, expressed in percentage? Is it +100% or +50%?

    PL change = fitty percent.

     
    Last edited: May 25, 2022
    #11     May 25, 2022
  2. In such cases with both positive numbers I use this formula:
    pct_chg = endval / startval * 100 - 100
    ie. for the above case:
    pct_chg = 100 / 25 * 100 - 100 = 300 (not 400%)

    I see. But I think in this simple case of just 1 position from t0 to t1 it's both the same:
    "percentage gain in PL" and "percentage gain in the account".
    I practically mean the account change in percent of such a single position,
    but as said with negative numbers at both t0 and t1, where t1 > t0.

    And: I wonder if there exist a math formula that covers all cases (incl. negative values) of such percent calculations.
    The page(s) about "percentage" at Wikipedia don't even mention any negative numbers, so they were useless in this case. :-(
     
    Last edited: May 26, 2022
    #12     May 26, 2022
  3. That's the question, Watson! Are you sure? :)
    My math says different: +100%, as said in prev posting.
     
    Last edited: May 26, 2022
    #13     May 26, 2022
  4. SunTrader

    SunTrader

    To turn a result negative just multiply by -1

    OP still has given too little info. Their loss (negative) of course. :)
     
    #14     May 26, 2022
    murray t turtle likes this.
  5. :)
    Or use val = -val
    I don't think so. Everything is already there.
    And FYI: "they are", not "their" :)
     
    #15     May 26, 2022
  6. SunTrader

    SunTrader

    Don't think so.

    They are loss?
     
    #16     May 26, 2022
  7. From -200 to -100 is a gain, a 100% gain, ie. a doubling.
     
    #17     May 26, 2022
  8. easymon1

    easymon1

    yep.
    The water under which this trade exists (the negative value) is half as deep at the second measurement point as it was at the first measurement point.
    fitty. lol
    Secondly, of what value is knowing this redonkulous measure in the first place.
     
    #18     May 26, 2022
  9. easymon1

    easymon1

    What did you gain?
    You reduced the negative value. by fitty.
     
    Last edited: May 26, 2022
    #19     May 26, 2022
  10. The debt was reduced by 100%, not 50%.
     
    #20     May 26, 2022