If you are not using StocksCafe to track your option trades, you can skip this post.
Recently, we updated the two pages on Desktop under Closed Position (i.e. Summary and Details) with more information for options traders to better understand their performance.
In this post, we would like to explain the some of the key terms and definitions in these pages:
- P&L: It only considers the difference between SELL trade total and BUY trade total.
- +AE: Includes the assignment and exercise P&L. e.g. if you are assigned or exercised the option, we will use the difference between strike price and close of the day to compute the P&L due to the assignment or exercise.
- Win Rate: For every closed options trade, how many had P&L > 0?
- Average P&L (%): Average of all closed trades P&L (% is based on the premium for long trades and strike for short trades).
- Total P&L: Sum of all closed trades’ P&L.
- Average Days: Average number of days until options position is closed.
As always, feel free to reach out if you have questions, comments or feedback.
Happy investing!
