Fund Manager
PORTFOLIO MANAGEMENT SOFTWARE
Contact Us

Entering options

Questions about updating prices or transactions in Fund Manager

Postby -Andy- » Wed Jan 08, 2020 9:15 pm

What is the most correct or clearest way to enter and track options in FM? In my case these would nearly always be covered calls. I can see there is an investment type = option.

Each cov call would seem to need a unique symbol, I couldn't use the symbol of the stock since that would mix the stock and option transactions together. However I don't want to create a new symbol for each call, otherwise there will be far too many in the database by the end of a year, each one having been used only once.

As well as the method of entering the options, I would hope to bring up the stock with the portfio and in some report, see the options still open against it, or run a filter to see all open options so I could go through them on the close date and update what happened for each of them.

Are there any tutorial or write-ups on this topic?

Thanks,
Andy
-Andy-
 
Posts: 9
Joined: Tue Jan 06, 2015 7:42 pm

Postby Mark » Thu Jan 09, 2020 8:53 am

Hi Andy,

When tracking options, you do need to create a new investment for each option. We have some tips for tracking options.

There aren't any special features to be able to report on just a specific stock and the associated options. Since they would all have different symbols, you might want to group them into their own sub-portfolio, which you could then easily report on.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 9452
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby -Andy- » Fri Jan 10, 2020 2:41 pm

I like the idea of using a sub-portfolio to keep the options separate and I could make up generic symbols instead of ones specific to a date.

Selling that "investment option" for a total of (example) $200 less a $5 commission for $195, would result in the account having a reduction of $5 in value at that moment, but in reality it's up by $195. That would be effective one or two months later when the call expires but it's more accurate if that $195 income and $200 (or whatever the current mkt value of that option is), is left unrealized if I look at a report or chart. Would there be a way to do that?

Thanks
Andy
-Andy-
 
Posts: 9
Joined: Tue Jan 06, 2015 7:42 pm

Postby Mark » Fri Jan 10, 2020 3:51 pm

Hi Andy,

If you sell an option for $195 ($200 - $5 commission), you will have a deposit of $195 in cash. So, your portfolio value would change very little, depending on the pricing of the option that you sold (and now own a negative number of shares).
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 9452
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby -Andy- » Tue Jan 14, 2020 11:12 am

Thanks - I was going to say I'd prefer to have only the income from the sold call recognized in the portfolio overall value, and not include the current value of that outstanding call since my intention is usually or always to let it expire, but the portfolio value is inaccurate from that viewpoint anyway until the call closes if the stock is currently above the strike and will get called away! Then the value drops back to the strike price.

Then another cycle of calls begins and the ambiguity on the exact value resumes :)

Andy
-Andy-
 
Posts: 9
Joined: Tue Jan 06, 2015 7:42 pm


Return to Prices and Transactions

Who is online

Users browsing this forum: No registered users and 11 guests

FundManagerSoftware.com | Search | Site Map | About Us | Privacy Policy
Copyright © 1993-2020 Beiley Software, Inc. All rights reserved.
cron