How to record an option sale?

fredericch
fredericch Member
edited September 23 in Investing (Mac)
Is an option sale categorized as a "sell" or a "Short Sell" or something else? When it expires or gets exercised, is it a "Buy" or a "Buy to cover"?

Best Answer

  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    Accepted Answer
    When you write a call, you are selling something you don't own. So it is always recorded as a short sale.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.

Answers

  • I should maybe specify that I'm using Mac Quicken Deluxe 6.3.3, if that makes a difference. It seems that often there are big differences between Windows and Mac versions!
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    No need to guess. If you opened the position with a Buy, close it with a Sell. If you opened with a Sell Short, close with a Cover Short.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • That makes sense. Thank you. I guess my underlying question was how to record an option. Does it make a difference in reporting or calculating returns if I enter a covered CALL sale as a 'Sell' or a "Sell Short". Should all options be recorded the same way, or is it case by case (covered or not covered, etc)?
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    Accepted Answer
    When you write a call, you are selling something you don't own. So it is always recorded as a short sale.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.