Stock Option Balances

Orion13

My listed Stock options are listing negative values in my net worth calculations in Quicken. Since Options would not be exercised when at a loss, and simply be allowed to expire, why does Quicken take the value negative and thus reduce net worth? Is there a setting or something I have wrong in investment set up for the Options? Please assist?

Orion13

"when at a loss" not lot. Sorry for the typo.

(Edited the above typo. q_lurker)

Quicken Francisco

Hello @Orion13

Thank you for reaching out on the community and telling us about your issue. I do apologize for the issue you're having. In this case if you if you could provide some screenshots of the options and also the a transaction of the option as well it'd help in figuring out what we can do it get it to show up how you would like it to. I'll leave an article down below on how to do so.

https://community.quicken.com/discussion/7867159/faq-how-do-i-post-a-screenshot-in-the-community-from-windows#latest

Once you get the chance let us know and from there we'll see what we're able to find.

Thanks,

Quicken Francisco

Orion13

Hi Francisco,
Attached are two screen Snips. I almost think that in the Stock Options wizard there should be a setting or something that tells the system if the user wants to see negative value if the company share value goes lower than the Option price, or just to hold at $0 value if the shares are less than the option price. The account bar should know that you are dealing with options, as that is part of the set up. (Note - stock ticker is NWBI. I have it listed as NWSB for internal reasons.)
Hope the shots help with suggestions.
Thank you,

Tom Young

I just tried a simple test in a test file with a test stock and I didn't see that unexercised options, whether in or out of the money, affect the net worth report.  I didn't see any particular setting that would affect this behavior.  My test didn't include a publicly traded stock, but this is irrelevant.

From the screenshot of the option Account transaction list you've posted it's clear that the options transactions listed there have nothing to do with the Account's "negative" situation.  The Account shows a negative cash balance as of the 5/18/2024 vesting and that negative cash clearly coming from some transaction or transactions prior to 5/18/2024.  Also, none of the transactions subsequent to the 5/18/2024 transaction are affecting the cash balance, which is proper. 

I can only guess why this is, and my guess is that somewhere along the line you did some "cashless" exercises, and didn't account for this properly.  When you tell Quicken "I exercised this option for 1,000 shares at $15 a share" the accounting that results from this statement is:

Debit (increase) Investment in XYZ Co. Stock  $15,000
Credit (decrease) Cash                                         $15,000

In a cashless exercise you don't literally pull $15,000 out of your pocket and hand it over to your employer, the employer deducts the $15,0000 from the cash raised by the simultaneous exercise and sale of stock, but until you "tell" Quicken about that amount withheld the negative $15,000 will continue to sit inside the Account.

Work back to when cash in this Account first went negative and see if that's the issue here.

Orion13

Thank you Tom - I will try that. I believe I understand what you are suggesting. I will let you know - or perhaps ask for more help .