Selling Call Options, properly entering them

Posted by Allen on May 2, 2007, 8:59 pm

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Is there a tutorial on properly handling Call options in Quicken? I've been
downloading them from my TD Amertrade account. Last year I sold CALL
options, but not this year, however, they still appear in my list of
holdings. For example here's a report on one of the calls I did below.
You'll notice that 800 were sold, then 800 were bought:

2/17/2000 through 5/2/2007

Date Account Action Security Category Quote/Price Shares Commission Cash
Amount Invested Cash+Invest

CCJ Aug 40 Call
7/24/2006 Ameritrade ShtSell CCJ Aug 40 Call 1.250 -800.000 16.03
983.97 -983.97
8/21/2006 Ameritrade Added CCJ Aug 40 Call 800.000

TOTAL CCJ Aug 40 Call 16.03 983.97 -983.97 0.00

OVERALL TOTAL 16.03 983.97 -983.97 0.00

Perhaps I entered them incorrectly???? Thanks for any guidence.

Posted by Steve Dell on May 9, 2007, 9:54 am

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To say the Quicken is not elegant handling options would be an
understatement. I've been writing covered calls, uncovered puts and the like
for many years. Here's my approach:

Let's take covered calls as an example:

Opening Transaction: Sell 10 DELL JAN 30's at $2.00
Enter: ShtSell "1000 Dell JAN 30" (DLQAF)" at $2.00/share less any
commissions and fees. Quicken will calculate an amount and put it into the
cash portion of your investment account. (Approximate amount is $2,000.00)

Closing Transaction : Buy 10 DELL JAN 30's at $0.15
Enter: CvrSht "1000 Dell JAN 30" (DLQAF)" at $0.15/share. (Approximate
amount will be $150.00)

At this point you should have no shares of "Dell JAN 30" (DLQAF)"

If the option expires worthless, it is very important that you enter a
closing transaction with a price of $0.00/share for the 1000 shares (10
options).
It is equally important to enter the same closing transaction if the stock
is called away from you.

Quicken's database of stocks do NOT include options so you will jump thru
various hoops to enter the stock symbol that you're using. Just enter it
manually.

It is important that you enter these as "short sales" first and not as a
"sale" since you don't have the corresponding security in your account to
"sell."

Hope this helps.

Email me directly if you need more help.

stevedell at comcast dot net

> Is there a tutorial on properly handling Call options in Quicken? I've

> been downloading them from my TD Amertrade account. Last year I sold CALL

> options, but not this year, however, they still appear in my list of

> holdings. For example here's a report on one of the calls I did below.

> You'll notice that 800 were sold, then 800 were bought:

> 2/17/2000 through 5/2/2007

> Date Account Action Security Category Quote/Price Shares Commission Cash

> Amount Invested Cash+Invest

> CCJ Aug 40 Call

> 7/24/2006 Ameritrade ShtSell CCJ Aug 40 Call 1.250 -800.000 16.03

> 983.97 -983.97

> 8/21/2006 Ameritrade Added CCJ Aug 40 Call 800.000

> TOTAL CCJ Aug 40 Call 16.03 983.97 -983.97 0.00

> OVERALL TOTAL 16.03 983.97 -983.97 0.00

> Perhaps I entered them incorrectly???? Thanks for any guidence.

Posted by A Count on May 11, 2007, 1:15 pm

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> To say the Quicken is not elegant handling options would be an

> understatement. I've been writing covered calls, uncovered puts and the

> like for many years. Here's my approach:

> Let's take covered calls as an example:

> Opening Transaction: Sell 10 DELL JAN 30's at $2.00

> Enter: ShtSell "1000 Dell JAN 30" (DLQAF)" at $2.00/share less any

> commissions and fees. Quicken will calculate an amount and put it into the

> cash portion of your investment account. (Approximate amount is $2,000.00)

> Closing Transaction : Buy 10 DELL JAN 30's at $0.15

> Enter: CvrSht "1000 Dell JAN 30" (DLQAF)" at $0.15/share. (Approximate

> amount will be $150.00)

> At this point you should have no shares of "Dell JAN 30" (DLQAF)"

> If the option expires worthless, it is very important that you enter a

> closing transaction with a price of $0.00/share for the 1000 shares (10

> options).

> It is equally important to enter the same closing transaction if the stock

> is called away from you.

> Quicken's database of stocks do NOT include options so you will jump thru

> various hoops to enter the stock symbol that you're using. Just enter it

> manually.

> It is important that you enter these as "short sales" first and not as a

> "sale" since you don't have the corresponding security in your account to

> "sell."

Does Q track the intermediate value of the short position ?

Posted by Jim T. on May 12, 2007, 9:31 am

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wrote:

>> To say the Quicken is not elegant handling options would be an

>> understatement. I've been writing covered calls, uncovered puts and the

>> like for many years. Here's my approach:

>> Let's take covered calls as an example:

>> Opening Transaction: Sell 10 DELL JAN 30's at $2.00

>> Enter: ShtSell "1000 Dell JAN 30" (DLQAF)" at $2.00/share less any

>> commissions and fees. Quicken will calculate an amount and put it into the

>> cash portion of your investment account. (Approximate amount is $2,000.00)

>> Closing Transaction : Buy 10 DELL JAN 30's at $0.15

>> Enter: CvrSht "1000 Dell JAN 30" (DLQAF)" at $0.15/share. (Approximate

>> amount will be $150.00)

>> At this point you should have no shares of "Dell JAN 30" (DLQAF)"

>> If the option expires worthless, it is very important that you enter a

>> closing transaction with a price of $0.00/share for the 1000 shares (10

>> options).

>> It is equally important to enter the same closing transaction if the stock

>> is called away from you.

>> Quicken's database of stocks do NOT include options so you will jump thru

>> various hoops to enter the stock symbol that you're using. Just enter it

>> manually.

>> It is important that you enter these as "short sales" first and not as a

>> "sale" since you don't have the corresponding security in your account to

>> "sell."

>Does Q track the intermediate value of the short position ?

It seems to-
One point - if you use the "online" "compare" you will find that that
report is wrong in some cases. It does not match either the holdings
download from the broker or your Quicken file.

Posted by A Count on May 12, 2007, 3:58 pm

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>>Does Q track the intermediate value of the short position ?

> It seems to-

Then we're almost reassured ?