How to enter covered calls?

skelly
skelly Member
edited February 16 in Investing (Windows)
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?

Answers

  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    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
    skelly Member
    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
    Tom Young SuperUser ✭✭✭✭✭
    "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.
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