Selling Options and Misleading Win %

If you sell an option and let it expire, C2 will ALWAYS show that as a profitable trade, regardless of whether or not the option truly expires worthless or if it expires in the money. This can dramatically boost the Win % for strategies that are heavy option sellers. I understand the corresponding P&L is reflect in the assigned stock position, but it still drives an unrealistic Win %. This can be very misleading to potential subs, and opens up the possibility to “game” a system to look better than it really is.

Seems like C2 could make an easy fix to the way they handle this that produces more transparent and accurate results.

This is not a problem at all.

1 Like

How is that not a problem?

I agree, it´s not a problem. If someone evaluates a system solely on the win% he really has gotten something wrong. Besides that the system still hast to be profitable. If all your options expire deep ITM you will have a high win% but still loose money so everyone will see it at a glance. It´s technically correct to count every expired short option as a winner because you always win the premium no matter where the underlying stands at expiration. What the underlying does afterwards is a different matter though, but it´s tracked seperately so it´s alright.


Ok then, I can see it both ways. So long as everyone is aware.

Best of luck to all.