is it right to look at it the losses like this

M

met1989

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.
 
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