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Selling covered CALL options

Rafi Schwartz

Not sure how my broker classifies the transaction however quicken classifies the sale of a covered CALL as a Shtsell. There are two potential outcomes to this (1) the option expires and was not exercised (2) the option was exercised by the purchaser of the CALL. How do record in quicken the 2 options? Is CvrShrt the correct way to close the original ShtSell?

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Accepted answers

Rocket J Squirrel

It would be the same number of shares you initially sold short. The share balance needs to go to zero. To Quicken, there is no difference between exercise and expiration.

All comments

Rocket J Squirrel

Rafi Schwartz said:

Is CvrShrt the correct way to close the original ShtSell?

Yes, in both cases.

Rafi Schwartz

Can you send a screen shot from quicken that shown how to enter the CvrShrt. I have enclosed a screenshot of the ShtSell.

Thanks

ShtSell.PNG

Rocket J Squirrel

OK, here's one.

Image: https://us.v-cdn.net/6031128/uploads/editor/6j/hcoz0p916rps.png

Rafi Schwartz

Hi Rocket,

Just to be sure I am doing this correctly, if the call expired rather than get exercised would the "number of shares" field remain 400 or whatever the number of shares was on the initial ShtSell?

Thanks

Rocket J Squirrel

It would be the same number of shares you initially sold short. The share balance needs to go to zero. To Quicken, there is no difference between exercise and expiration.

Rafi Schwartz

Works like a charm. Too bad quicken does not have an "Expired" option.