What Is an Option Spread?
A spread option is a type of option contract that derives its value from the difference, or spread, between the prices of two or more assets. Spread options differ from various option spread strategies constructed with multiple contracts on different strike prices or differing expirations. Other than the unique type of underlying asset—the spread—these options act similarly to any other type of vanilla option.
Option spreads and Win %
When trading spreads, there will many times be one winning trade and one loosing trade and the combined PnL will determine if the spread trade was profitable or not.
This means that the win rate % will not reflect the win rate of spreads but on the individual trades and result in 50% if trading 2-legged spreads.
Spread detection and grouping on kinfo
With PRO+, kinfo supports automatic detection and grouping of veritcal spreads.
PnL will be recorded for the spread and wether it was a win or loss as well.
Supported spread types
Kinfo supports the most commonly used spreead types
Condors
- Iron Condor
- Reverse Iron Condor
- Long Call Condor
- Long Put Condor
- Short Call Condor
- Short Put Condor
Strangles
- Long Strangle
- Long Guts
- Short Strangle
- Short Guts
2-legged
- Bull Call
- Bull Put
- Bear Call
- Bear Put
Butterflies
- Iron Butterfly
- Reverse Iron Butterfly
- Long Call Butterfly
- Long Put Butterfly
- Short Call Butterfly
- Short Put Butterfly
Straddles
- Long Straddle
- Short Straddle
- Strip
- Strap
Box Spreads
- Long Box
- Short Box
Enable spread detection
Spread detection can be enabled under Settings -> Trade Settings
To use spread detection, a PRO+ subscription is required
Limitations
Vertical & horizontal spreads
Spread detection currently supports vertical spreads and not horizontal.
% Gain
Spreads will not have a % gain
Multiple spreads intraday on same ticker
If you have multiple spreads on the same trading day on the same ticker it won´t separate them into individual spreads.
