Expiry of options

English Transactions
21

I wonder if adding a “option” transaction associated to a security would be enough?

this would be similar to dividend transaction but with diferent fields would suffice? so we could record the option transactions and associated cost/credits.

a put would result on a net credit - the fees and a call would result on a debit + fees

22

First of all, thanks to the team for creating such a wonderful financial tracking software.

I understand that Portfolio Performance does not natively support options, so I’m just trying to find the best workaround for tracking the cash inflows and getting the position to close at expiration.

I reviewed this thread and tried to follow the outbound delivery method, but I’m still running into an issue. After inputting the option expiration using Delivery (Outbound), the option still shows up in my Statement of Assets.

For example, I sold 1 contract of BBAI260327C00005500, which expired worthless. I created the instrument manually, entered the sell transaction, and then added a Delivery (Outbound) transaction at expiration with zero value. But the option still remains in the Statement of Assets.

I also tried a workaround using a Buy transaction at 0.01, which removes the option from the Statement of Assets, but I’m not sure if that could affect performance or IRR calculations.

Could someone please confirm the best way to input an expired option in PP, and whether the quantity should be entered as 1 contract or 100 shares?

Any guidance would be greatly appreciated.

Example Scenario - Sell covered call option expiring worthless. Using BBAI260327C00005500 option as my example option.

Initial Setup

  1. Create new empty instrument prior to expiration date
    1. Name - BBAI260327C00005500
    2. Symbol - BBAI260327C00005500
    3. Select Yahoo for Historical quote
  2. Input Sell Transaction
    1. Shares - 1
    2. Quote - Total Cost Basis - 9
    3. Fee - .04

Expiration - Delivery (Outbound) Transaction
Outcome option is still listed in my Statement of Assets

  • Delivery Outbound Transaction
    • Shares - 1
    • Quote - 0.00

Expiration - Buy Transaction
Outcome option is no loner listed in my Statement of Assets

  • Buy Transaction or Convert above Delivery (Outbound) transaction to Sell
    • Shares - 1
    • Quote - 0.01
23

How I use PP while doing some option trading.

Step 1 :

  • create the security in PP

Step 2 :

- create the option in your broker application and

-— when receiving a premium, create a “Fees Refund” transaction in PP

-— when paying a premium, create a “Fees” transaction in PP

Step 3 :

- assignment to buy shares ? create a BUY transaction in PP

- assignment to sell shares ? create a SELL transaction in PP

This way of handling option trades in PP works for me.

24

That’s very good idea until it is implemented that feature in PP.

Thank you!