Stock Option Accouting?

[chris]

On Wed, 2003-0Corrections: After looking at GnuCash, I don't transfer
shares from the
stock account to the options account.  I just sell shares from the
options account to start, so it shows -100 share for 1 contract.  The
stock account never updates or changes the number of shares, whether an
option has or hasn't expired.


6-25 at 20:48, chris wrote:
> 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
> > > 
> > > _______________________________________________
> > > gnucash-user mailing list
> > > gnucash-user at lists.gnucash.org
> > > https://lists.gnucash.org/mailman/listinfo/gnucash-user
> 
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at lists.gnucash.org
> https://lists.gnucash.org/mailman/listinfo/gnucash-user