Fund Manager
PORTFOLIO MANAGEMENT SOFTWARE
Contact Us

How to Handle Buying Calls

The tracking of purchased calls is straight forward.  Create a new investment for the calls and record the purchase just as you would for a stock.

There are three possibilities on how the position will get closed:

  1. If the call expires worthless, record a sell in this investment at a price of $0/share to close the position.
  2. If you decide to sell the call before it expires, just record the sell at the price you received.  This is identical to how you would track a stock.
  3. If you exercise the call, record a sell in the call investment at $0/share, as well as a purchase in the underlying stock's investment at the option price.
FundManagerSoftware.com | Search | Site Map | About Us | Privacy Policy