Stock Option Accouting?

[chris]

This is very simple, but it has worked for me so far.

I use GnuCash.  I trade options (minimally), too, but only 'sell to
open' (write covered calls I believe is the correct terminology).  i.e.,
I bought 100 shares of XYZ; I can now 'sell to open' an option
contract.  As soon as the contract is sold, the money for the contract
shows up in my account, minus commisions.  When the contract expires and
the price is below the strike price I sold at, I keep my shares and the
money that used to buy my option contract.

The way I track this in GnuCash (totally hacked together, I am sure).

1) Create stock account for XYZ company
2) Create sub-account of XYZ company for my options (calls)
3) Buy XYZ stock, put 100 shares in XYZ account
4) Sell a contract on my XYZ shares, enter a transaction in the XYZ
options account that transfers the 100 shares from XYZ stock to XYZ
options, with the price of the contract and commisions.
5) When the contract expires or I buy it back, create a transaction in
XYZ options account that transfers the 100 shares back to XYZ stock from
XYZ options.

If I have a contract out, GnuCash then shows how many shares of XYZ I
have available to sell, write more calls, etc...  i.e., if I had 100
shares of XYZ and had a call contract written, GnuCash shows that I have
0 shares in XYZ stock and 100 shares in XYZ options.

This method has worked nicely for me so far.

Chris

On Wed, 2003-06-25 at 10:20, Derek Atkins wrote:
> Nope, GnuCash doesn't track options.  Part of the reason is
> that options aren't worth anything until you actually exercise.
> Once you exercise, then you actually have some stock....
> 
> -derek
> 
> Roland Roberts <roland at astrofoto.org> writes:
> 
> > Is there anything in GnuCash to let me track stock options?  My
> > employer has started an incentive program and I'd like to keep track
> > of it.  I could set it up as an ordinary stock account, but there are
> > some obvious differences which would be hard to keep track of, like
> > the strike price on the option, whether or not it is exercisable and
> > whether it has been exercised---at which point it goes into a stock
> > account is is no longer an option.
> > 
> > The plan they have is roughly like this:  
> > 
> >     25%    vests on the first anniversay of the grant
> >      6.25% vests each quarter thereafter
> > 
> > 
> > regards
> > 
> > roland
> > -- 
> > 		       PGP Key ID: 66 BC 3B CD
> > Roland B. Roberts, PhD                             RL Enterprises
> > roland at rlenter.com                            6818 Madeline Court
> > roland at astrofoto.org                           Brooklyn, NY 11220
> > 
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