Identify Early Closing Opportunity

Closing a position early can often improve risk-adjusted returns, especially when most of the premium has already been captured.

OptionIncome helps you quickly spot positions that may be good candidates for an early close.

How OptionIncome helps

In the Live Positions panel, sort positions by P&L (%) to surface trades that have already captured most of their premium.

For example, if a position is at 80% P&L, you only need to pay back roughly 20% of the initial premium to close the trade, which may be an attractive risk-reward tradeoff.

Using AROI

You can also evaluate early closing opportunities using AROI (Annualized ROI).

Expand a position to view:

• The initial AROI at trade entry, calculated from the initial premium, entry date, and expiration date.
• The current AROI, calculated based on your current P&L and the holding period if you close the position today.

If the current AROI is significantly higher than the initial AROI, it may indicate that closing early offers a better return relative to time and risk.

Combining P&L percentage and AROI helps you make more informed early-close decisions instead of holding positions until expiration by default.