Position

Introduction

The Position widget, as the name suggests, is used to create Options positions. It is designed to receive and process data to define an Options position. This widget does not generate output data on its own; rather, specific Options data should be imported from other widgets such as Option and Black-Scholes (BS).

Accessing The Widget

Right click everywhere on the dashboard opens the menu, and the widget can be found under Option.

Position

The three most important input parameters in the Position widget are the side of the position ("Side"), the size of the position ("Size"), and the entry price of the option ("Entry Option Price").

A Position widget

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Entry Option Price

The Option Price can be manually entered by the user based on their trade price, or it can be imported from the Option chain (widget) via sockets, using the mark price, best bid, or best ask. This feature allows for accurate pricing and cash flow representation in the Position widget. However, over time, the Option price changes due to market movements and other factors, resulting in a difference between the "Entry Option Price" and the current option price. This difference is crucial for calculating the profit or loss on the position in question.

Entry Contract Value

The "Entry Contract Value" field in the Position widget is empty by default and receives its value from an external widget connected to the Position widget. This field is not intended for direct input but reflects the value of a position resulting from the connected widget.

The distinction between "Entry Option Price" and "Entry Contract Value" becomes particularly relevant when the contract size of the Option deviates from 1. With a contract size ratio of 1, the "Entry Option Price" corresponds to the "Entry Contract Value." However, if the contract size is greater or less than 1, the difference becomes visible.

For example, consider an Option that controls 100 shares of an underlying asset, such as stocks. The Option price might be 1 Euro, but the value of the entire contract would be 100 Euros since the option price is per share. In contrast, with Bitcoin, the contract size is often less than 1. Although the price is per Bitcoin, the value of an individual contract is less, corresponding to the fraction of Bitcoin the contract represents.

Entry Contract Value

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Entry Date

The "Entry Date" refers to the point in time at which an Option position is opened. This date cannot be later than the Option's expiration date, for an expired Option can no longer be traded.

Regarding the "Valuation Date," the "Entry Date" must be earlier. This is necessary to calculate meaningful values for the valuation of the position. If the "Entry Date" is later than the "Valuation Date," the profit or loss is set to zero. This reflects the reality that there can be no profit or loss from a position that has not yet been opened.

Entry Date

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Exit Option Price

The "Exit Option Price" refers to the price of the Option at the time the position is closed. When a value is entered in this field, two additional fields automatically become visible: "Exit Contract Value" and "Exit Date."

The "Exit Contract Value" indicates the value a contract had when the position was closed, similar to how the "Entry Contract Value" indicates the value when the position was opened.

The "Exit Date" marks the time at which the position is closed. This date coincides with the expiration date when an Option expires. If the position is closed early, the "Exit Date" should be earlier than the expiration date. It is not permitted to specify an "Exit Date" that is later than the Option's expiration date, because an Option is no longer tradable after it expires, and therefore the position cannot be closed.

Exit Option Price

A special case occurs when the "Exit Date" is earlier than the "Valuation Date" of the Option. This indicates that the profit or loss of a position is to be calculated after it has already been closed. In such a scenario, the profit or loss results from the difference between the "Entry Contract Value" and the "Exit Contract Value."

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Financial

At the middle of the widget there is a section, "Financial". The section can be expanded or collapsed by clicking on the corresponding arrow icon.

Financials on Position

The Financial section contains important financial data such as cash flow, position value, realized/unrealized profit and loss (PNL realized/unrealized) and profit and loss at the time of option expiration (PNL at Expiry).

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Greeks

The section "Greeks" is placed at the bottom of the Option widget. It lists the so-called Option Greeks for the position. It is important to note that the Greeks of a position may differ from the Greeks of the underlying Option itself due to the size of the position.

Greeks in Position

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