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Options 101
Why Your 0DTE Option Shows a Loss the Second You Buy It
You click buy, the fill confirms, and the position is already down before a single tick. Nothing broke — you're just seeing the spread.
NoVo Options Trading · 2026
It unnerves every new options trader: you buy a call, and before SPY has moved at all, the position shows a small loss. It's not a glitch, a fee, or a bad fill. It's the bid-ask spread, showing up exactly as it should.
What's actually happening
You bought at the ask — the price sellers are offering. But your platform values the open position at the mark, which is usually the midpoint of the bid and ask. So the instant you're filled, your entry (the ask) is above the mark (the mid), and the difference — roughly half the spread — shows as an immediate unrealized loss. If the option is 1.20 bid / 1.30 ask, you paid 1.30 and it's marked at 1.25: down $0.05 (times 100), before anything happened.
Why it's not a real “loss” yet
It's the cost of the round trip, front-loaded onto the display. To get back to flat, the option's mid has to rise by that half-spread; to actually profit, it has to cover the whole spread you'll pay again on the way out. That's real — it's why fills and spreads matter so much to a scalper — but it's a transaction cost, not the trade going against you.
The instant red isn't SPY moving against you — it's the spread saying hello. You've simply pre-paid the round trip.
How to keep it small
Trade liquid, near-the-money strikes where the spread is a penny or two, and use limit orders near the mid instead of paying the full ask. Do both and that opening red shrinks to almost nothing — which, across many scalps, is the difference between a viable plan and one that bleeds on costs.
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NoVo is a software tool for market analysis and for executing trades you initiate, not financial advice. This article is general education, not investment advice. Options trading involves substantial risk of loss, up to and including your entire capital. NoVo makes no guarantee of profit, win rate, or performance, and past results do not predict future outcomes. You are responsible for your own broker account, configuration, and trading decisions.