why don't i see the profits

hey
im using the demo account of IB and i sold 2 options in order to collect the premium but how come i don't see in my Relized profits the credit of the option selling at wha t stage do i see it ?

 

After the option expires, if it expires otm at least.
What you should see upon selling an option is the premium amount credited to your cash balance

 

When the option expires or when you cover. Of course there is far from any guarantee that you will have realized a profit.

BTW, if you need to ask this question, you are not ready to sell naked options which it sounds like you are doing.

 

wouldn't that be considered a RELIZED profit?

 

im not selling a naked call its actually covered and its a demo for learning

 

As others have mentioned, there is no realized profit if a position is still open. You have to buy to close the option or it has to expire for realized gain.

 

but that doesn't make sense cause i do collect premiums on selling the options ?!

 

Yes, you collect the premium but you have not earned the premium yet. If the underlying moves against you, you will LOSE money. The cash balance of your account increases by the amount of the premium received buy the short obligation reduces account value by the same amount until the price of the option increases or decreases.

As Wildchild suggested, if you need to ask this question, you are not ready to sell naked options which it sounds like you are doing. I'd add that you really need to get hold of a good option book and lose yourself in it for a few months

 

Financial options (whether for corn, coffee, or cash) are insurance policies.
By selling options, you have become an insurance provider.
The options you have sold are liabilities on your account, which liabilities you HOPE will shrink, and the position become profitable.
When you buy-to-close that position, then profits, or losses, will be realized.

Along with a good option book (as per spindr0 above), focus on net liquidation and available overnight margin.

 

Pick up a copy of "Options as a Strategic Investment" by Lawrence G. McMillan. When you grasp what's in that, read "Option Volatility & Pricing: Advanced Trading Strategies and Techniques" by Sheldon Natenberg. Then, read them both again. After that, you MIGHT have a shot at succeeding with options.