option spread performance

[mse]

Are the performance numbers (such as the % performance at the top of portfolio charts) accurate for option debit spreads (for example, long a 100 call and short a 105 call)? These spreads have an absolute cost which is the payment for the long option minus the income from the short option. In a portfolio of these, the base cost oop for measuring performance is just the cost of the longs minus the income from the shorts.

[Mark]

Hi mse,

The percentages across the top of graphs are yields. There are both TWR or ROI yields. The yields factor in all your recorded transactions, including purchases, sells, and any recorded distributions of any type. ROI yields cannot be calculated on short only positions, but they are for objects that have an overall positive value, such as your portfolio that may include some short positions, yet maintain an overall positive value.

To answer your question, the yields include all recorded transactions, so if you've recorded income in some investments, that income is included in the overall yields. The yields only include recorded transactions during the yield term.