For traders, it’s important to know how to calculate profit and loss before placing an order. Here’s a guide to help you better understand the relationship between different variables and profit & loss calculations.
Average Entry Price
When traders place new orders for the existing Options contract, the entry price will change accordingly.
Formula
Position Average Price = [(Last Position Quantity × Last Position Average Price) + (Traded Quantity × Traded Price)/(Last Position Quantity + Traded Quantity)]
Example
Ann holds a 0.1 BTC BTC31DEC2148000C, with an entry price of $3,500. She believes that the price of BTC will continue to rise in the near future. Ann decides to increase her call options, and opens a new call option of 0.1 BTC at the entry price of $4,000.
Average Entry Price = [(0.1 × 3,500) + (0.1 × 4,000)/(0.1 + 0.1)] = $3,750
Unrealized P&L
Unrealized P&L (UPL) is the current profit or loss of open positions. Based on the direction of your position — long or short — the formula used to calculate the unrealized profit and loss will be different.
Buy Option 
Sell Option  
Description 
For traders who believe that the underlying asset’s price will rise in the future, they can choose to buy call or sell put options. 
For traders who think that the underlying asset’s price will drop in the future, they can choose to buy put or sell call options. 
Formula 
UPL = (Mark Price − Average Entry Price) × Position Quantity 
UPL = (Average Entry Price − Mark Price) × Position Quantity 
Example 
Ann buys a 0.1 BTC BTC31DEC2148000C, with an entry price of $3,500. The price of BTC rises, and when the Mark price reaches $4,500, the unrealized P&L of the option she holds is [(4,500 − 3,500) × 0.1] = 100 USDC. 
Bob sells a 0.3 BTC BTC31DEC2150000C with an average entry price of $2,600. The price of BTC rises, and when the mark price reaches $2,800, the unrealized P&L of the option he holds is [(2,600 − 2,800) × 0.3] = −60 USDC. 
Note: All Options contracts are settled in USDC.
ROI
ROI shows the percentage return on investment for each position.
Buy Option 
Sell Option  
Formula (Cross Margin Mode) 
（Mark Price  Average Entry Price）/ Average Entry Price 
（Average Entry Price  Mark Price）/ Average Entry Price 
Examples under Cross Margin Mode 
Sally buys a 0.1 BTC BTC23NOV2336000C, with an entry price of $4,700. The price of BTC rises, and when the Mark price reaches $4,900, the unrealized P&L of the option she holds is [(4,900 − 4,700) × 0.1] = 20 USDC. ROI = 20 / 4700 = 0.43% 
Bob sells a 0.1 BTC BTC23NOV2336000P, with an entry price of $4,700. The price of BTC rises, and when the Mark price reaches $4,900, the unrealized P&L of the option she holds is [(4,700  4,900) × 0.1] = 20 USDC. ROI = 20 / 4700 = 0.43% 
Formula (Portfolio Margin Mode) 
The calculation of options' ROI within the portfolio margin takes into account the underlying asset as a whole. ROI = Unrealized P&L of Derivatives on Underlying Assets/Initial Margin of Underlying Assets  
Delivery ROI 
(Delivery Cash Flow  Average Entry Price * Quantity  Fee to Open  Delivery Fee) / (Average Entry Price * Quantity) 
(Delivery Cash Flow + Average Entry Price * Quantity  Fee to Open  Delivery Fee) / (Average Entry Price * Quantity) 
Closed P&L
Closed P&L is the profit and loss that occurs when the trader closes the position.
Formula
Closed P&L for Buy Call/ Put = (Traded Price − Position Average Price) × Traded Quantity − Trading Fees (open and closed position)
Closed P&L for Sell Call/ Put = (Position Average Price − Traded Price) × Traded Quantity − Trading Fees (open and closed position)
Example
Sell Call: The BTC index price is $44,900. Bob sells a 0.3 BTC BTC31DEC2150000C, with an average entry price of $2,600. When the price of BTC drops to $44,000, he closes the position early at a mark price of $2,400.
The Closed P&L of the option is 52 USDC, based on the following calculation:
[(2,600 − 2,400) × 0.3] − 44,900 × 0.3 × 0.03% − 44,000 × 0.3 × 0.03%.
Delivery P&L
This is generated when the Option expires.
Formula
Delivered RPL for Call Option = Maximum (Delivery Price − Strike Price, 0) × Position Quantity + Premium (receive or pay) − Delivery Fee − Trading Fee (open position)
Delivered RPL for Put Option = Maximum (Strike Price − Delivery Price, 0) × Position Quantity + Premium (receive or pay) − Delivery Fee − Trading Fee (open position)
Example
Buy Call:
The BTC index price is $44,900. Ann buys a 0.1 BTC BTC31DEC2148000C, with an entry price of $3,500. When the contract expires, the BTC delivery price is $52,000. It’s traded at a strike price of $48,000. The delivery P&L of the option is 47.873 USDC, based on the following calculation:
Maximum (52,000 − 48,000, 0) × 0.1 − 3,500 × 0.1 − 44,900 × 0.1 × 0.03% − 52,000 × 0.1 × 0.015%
Let’s revisit Ann’s case, in which the BTC index price is $44,900. Ann holds a 0.1 BTC BTC31DEC2148000C, with an entry price of $3,500. The delivery P&L of the option is 400 USDC.
 Trading Fee = Minimum (0.03% × 44,900, 12.5% × 3,500) × 0.1 = 1.347 USDC
Note: Trading fee for a single contract can never be higher than 12.5% of the option price.
Let’s suppose that the estimated delivery price is $49,000 when the contract is about to expire.
 Delivery Fee = Minimum [(0.015% × 49,000, 12.5% × (49,000 − 48,000)] × 0.1= 0.735 USDC
As an option buyer, Ann needs to pay a premium to the seller to obtain the right to the call option.
Formula:
Premium = Traded Quantity × Traded Price
 0.1 × 3,500 = 350 USDC
Delivery P&L = 400 − 1.347 − 0.735 − 350 = 47.918 USDC
Closed P&L and Delivery P&L are different from Unrealized P&L and Realized P&L. It’s worth noting that Delivery P&L also takes premium into account. Please refer to the following table for details:

Unrealized P&L 
Closed P&L Realized P&L 
Delivery P&L 
Position P&L 
YES 
YES 
YES 
Trading Fees 
NO 
YES 
YES 
Delivery Fee 
NO 
NO 
YES 
Premium 
NO 
NO 
YES 
Realized P&L
Realized P&L is the profit and loss that occurs when the trader closes the position early. Please note that the Realized P&L in the position zone represents the total profit and loss of the position since the position has been held.
Formula
Realized P&L = Sum (Profit and loss on closed positions) − Trading Fees (open and closed positions)
Example
Let's see how the Realized P&L displayed in the position zone changes in different scenarios.
Scenario 1: Bob buys 0.4 BTC BTC31DEC2150000C when the Option mark price is $2,400 and the BTC index price is $44,000.
Trading Fee (open position) = 44,000 × 0.4 × 0.03% = 5.28 USDC
In this case, the Realized P&L of Bob's position is −5.28 USDC.
Scenario 2: The BTC index price rises to $44,900. Bob sells a 0.3 BTC BTC31DEC2150000C, with an average entry price of $2,400. He closes the position at a mark price of $2,600.
Realized P&L (before) =  5.28 USDC
Trading Fee (closed position) = 44,900 × 0.3 × 0.03% = 4.041 USDC
Realized P&L = [(2,600 − 2,400) × 0.3] − 44,900 × 0.3 × 0.03%  5.28 = 50.68 USDC
Scenario 3: Now Bob only holds 0.1 BTC BTC31DEC2150000C. Then, when the BTC index price is $45,000, he buys 0.2 BTC BTC31DEC2150000C at $2,500.
Realized P&L (before) = 50.68 USDC
Trading Fee (open position) = 45,000 × 0.2 × 0.03% = 2.7 USDC
Realized P&L (before) = 50.68 − 2.7 = 47.98 USDC
For more detailed information about option fees, please refer to Bybit Option Fees Explained.