[GNC] Options Trading

[Les]

Hi Alton:

Thanks a lot for your suggestions.  I will incorporate them in my 
options trades.

Les

On 6/11/19 7:45 AM, Alton Brantley wrote:
> 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