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Recognize the double-outflow record
For a fictional short put, premium 5 is received and holder payout at expiry is 10. A calculation −10−5=−15 treats the received premium as if the writer paid it.
Restore the receipt sign
Correct simple writer profit is −10+5=−5. The matching holder pays 5 and receives 10, earning +5. These sides sum to zero in the stipulated no-cost model.
| Side | Premium | Settlement | Simple profit |
|---|---|---|---|
| Holder | −5 | +10 | +5 |
| Writer | +5 | −10 | −5 |
Do not change the quoted premium itself
A premium quote can be positive 5 for both sides. The position determines its signed cash flow. Changing the quote to a negative premium can hide which field represents a price and which represents a payment.
Keep other obligations separate
A premium receipt does not eliminate margin, settlement or risk. The repair is an accounting correction for the model, not a claim that the writer has no further funding need.