Handling Options and Option Spreads

Joe Bornino
Joe Bornino Member ✭✭
edited January 23 in Investing (Windows)
For years it's been common knowledge that Quicken doesn't handle stock options, (especially spreads) correctly. I still update my Schwab accounts, but pretty much ignore the numbers. (Currently Quicken says my IRA broker account is $735 million in the red!)

Attached is an old article I found regarding how to deal with it. I actually haven't followed it, but was wondering if anyone out there has a better solution?

Comments

  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    The thread shown in the PDF document still exists on the forum, maybe a little easier to read.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription (US) on Win10 Pro.
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    edited December 2022
    And having reviewed it, the solution remains as simple as it ever was.
    • Quicken does not know about exchange-traded options. You have to handle them manually for the most part, meaning you can still download their transactions, but you must hand-correct all incorrect transactions downloaded from the broker.
    • Any option Buy To Open must be closed with a Sell.
    • Any option Short Sell To Open must be closed with a Cover Short.
    • If the option expired, the dollar amount is zero.
    No exceptions! If you deviate from these rules, you might end up with an account $735 million in the red.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription (US) on Win10 Pro.
  • Joe Bornino
    Joe Bornino Member ✭✭
    Very helpful thanks. The account goes back to 1999, so doubt there's easy way to fix 20 years of transactions. But would like to keep the records, maybe just void all the transactions? OR easier to recreate a new account and disable-hide the old account?
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    I can't think of any way to fix 20 years of transactions that wouldn't take 20 years to accomplish. Quicken, unfortunately, does not have any way to bulk-edit investment transactions.
    All I can think of is to correct the cash balance and enter future transactions properly. Then at least you'd have good data going forward. Hey, it's almost the new year, always a good time to make resolutions. :)
    Quicken user since version 2 for DOS, now using QWin Premier Subscription (US) on Win10 Pro.
  • Joe Bornino
    Joe Bornino Member ✭✭
    Think I'll create a new account with a different name and move the transitions to it, then hide.
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