How to enter covered calls?

skelly

Evening everyone, I have reckon accounts personal plus 2015 and I am now doing covered calls and cannot see how to enter the purchases. I can enter the purchase and commission paid under buy - shares bought but how do I enter the options income?

Sherlock

I suggest you post your query at: https://community.reckon.com/

In Quicken, you close the position opened with a Buy - Shares Bought with a Sell - Shares Sold.  If you sold a covered call, you would open the position with a Short Sale and close the position with a Cover Short Sale.

skelly

Thanks, but still a bit confused because doing it that way does that not increase the profit, so more capital gains tax. As the premium is an income is it not? I cannot seem to see where to record the premium in the short sale.

Tom Young

"I cannot seem to see where to record the premium in the short sale. "

The short sale puts the cash in your Account.  The cover short closes out the position and either takes cash out of the Account if you buy the position back or has no cash effect if the position expires unexercised. 

The difference between the "cash in" and "cash out" is your profit.