Definition: Cumulative Cost Basis

Let's say you have a Covered Call Position that has been rolling the short call for months, and you currently only have 1 open call Leg with the stock shares. Your Cumulative Cost Basis represents the price at which you could close the open shares and open call option to breakeven, including the credits and debits from all other Transactions within that Position.

At the Leg level, this is the Leg's Amount / Leg's Quantity, so it's similar in concept to the Position level.

Here is an example of the impact of cumulative cost basis on a covered call showing the impact of open and closed legs within a strategy:

The long stock position was opened for debit of $79.46. An Aug 20 85 call was sold initially, then rolled down to a 82.0 then to 80. The net Cumulative Cost Basis of the whole position is $74.58, an improvement of $4.88 over the initial stock trade.

Although Wingman displays the Cumulative Cost Basis for the 85 and 82.5 positions as Closed, the credits received from these positions are included in the Cumulative Cost Basis for the entire position.