[GNC] Options Trading

[Alton Brantley]

As you know, options are quoted in “contracts” of 100 shares (a lot), but the prices are quoted on a “per share” amount, I simply multiple the number of contracts by 100 for the quantity of shares value and the quote for the price.

So, on an opening transaction of a “Buy to Open”, you credit the total price, and debit the commission  to a subaccount named “Open Commissions”  and debit the quantity and price (=cost) to the option account.
On the closing transaction (“Sell  to Close”), you debit the commission and credit the option account. 
Then, do an Action->View Lots in the option account and match up the options, which will give you a “Realized Gain/Loss” in the option account. The realized gain/loss transaction is edited to add credit splits for the opening and closing commissions to give you your next transaction gain/loss(to match your brokerage statement).

On a short transaction (Sell to Open), the credit and debits are reversed for the cash account and the option account, but the commissions are still debited on the open and close, and credited on the Realized gain/loss reconciliation.

Hope this helps.

> Date: Mon, 10 Jun 2019 21:27:55 -0500
> From: Les <lelliott5 at gmail.com <mailto:lelliott5 at gmail.com>>
> To: Gnucash Users <gnucash-user at gnucash.org <mailto:gnucash-user at gnucash.org>>
> Subject: [GNC] Options Trading
> Message-ID: <e839a8ad-0ae7-8769-4d8d-27d16886a7a2 at gmail.com <mailto:e839a8ad-0ae7-8769-4d8d-27d16886a7a2 at gmail.com>>
> Content-Type: text/plain; charset=utf-8; format=flowed
> 
> Hi All:
> I can't seem to find any instructions on how to handle options. If 
> anyone is using options how are you using GC for tracking?
> I am using Linux Mint 19.0 and GC 2.6.19.
> Thanks,
> Les