Expiry of options

Firstly, thanks for the wonderful software!

I am wondering if anyone has used this successfully for options.

I can pull the right data if I input the right ticker from say Yahoo Finance, however, the software does not deal with expiry appropriately - I’ve had to “sell” or “buy” an option at expiry and enter 0.00001 as price as a close approximation.

Any ideas here? I can’t find any help files on this either.

Thanks!

Welcome @PolyMath_Thematics ,

PP is ideal for managing a diversified buy and hold / long only portfolio.

You cannot usefully map options transactions 1 to 1 in PP. However, you can map the results of your options trading in PP via an account.

CU, Laura

Hi,

It would be beneficial to have a tool similar to the one used for tracking dividends, but designed for expired sold options. This tool would allow users to record the premium received for specific companies.

With such a tool, I could monitor how much I earn from options, compare these earnings to dividends, and determine which stock has been the most profitable, among other analyses.

@VAndrej

You can already make such a comparison in PP by mapping profits/losses from options transactions via an account. :smiley:

CU, Laura

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Instead of a sell transaction, use (outbound) delivery, which does accept 0 as a total value.

This is the key - the ability to accept $0 as a value. Another case is where this is useful is when a stock goes bankrupt?

Maybe I am missing something but where I can enter options trades.
Please, could you be a bit more specific and describe the steps. Let’s say for the two easiest scenarios:
Experied sold put and call options, i.e. there is the premium and fee for a specific stock.

It doesn’t exist. I’ve just been entering options as a new security and referencing Yahoo Finance.

When it expires at 0, I have to do a transaction that prices it at $0.00001 as a close approximation to being worthless - because you cannot enter something with $0 price.

You need to post as outbound delivery rather than a sell…

Perhaps it will sink in via repetition. :slight_smile:

  • PP is an asset management tool designed and optimized for the management of a diversified buy and hold / long only portfolio.

  • Options trading is a financial transaction. It is the right to accept or reject a contract offer determined by price or quantity.

Options trading therefore takes place on the asset management runway and not in the tower. Different special tools are needed on the runway than in the tower. If these tools were also installed in the tower, this would not improve the tower’s work, but make it worse.

This means that options trading must take place on a specialized platform. In PP (the tower), only the effects of options trading (runway) on the overall portfolio (airport) are mapped and analyzed.

The best way to do this is via an account. Due to the large number of option types and exercise methods, it is not possible to provide general instructions for this.

PP provides all the necessary booking types to map an option transaction in a meaningful way. To do this, it is necessary to understand exactly how the respective option transaction works and to break it down to the booking options of PP.

@VAndrej

Analyze the determinants of your options business. You have profits/losses, income/expenses, key dates (e.g. Triple Witching Day).

You can then show the effects of these determinants on your overall portfolio using PP booking options via an account.

CU, Laura

If you are short options, you cannot do inbound to cover that… same problem unfortunately.

No, except you’re assuming that they have at all a value of zero. It’s similar to a birthday gift you’ll get. It has a value which need to be paid to the retailer, beside the host didn’t get any bill from the guests.

It is important to understand that almost any transaction can be mapped with the booking types offered by PP. To do this, the business transaction must be reduced to the essentials.

Excursus: If an investment loses value, it is usually first written down to a memo value. A write-down to zero or a write-off can be mapped in PP - as described several times - as an outbound delivery.

Thanks everyone for the response and again thank you for the great software.

I think I understand what you are all telling me with respect to outbound and booking types.

I’m just saying there is a scenario in which this doesn’t work or I cannot figure out how to book this correctly: if you sell options (ie short options), then later it expires worthless.

This is because inbound cannot cannot have price of $0 I think.