recording stock put to me via put option

shneal3 Member ✭✭
edited August 2023 in Investing (Windows)

I sold a put option on a stock. Prior to expiration, the put option was exercised and I was assigned shares of the underlying stock. How do I get the put option premium to apply to the cost basis of the stock shares. Quicken recorded the put option as a sale and short cover with a corresponding gain on the put transaction equal to the put premium, and the underlying shares as a separate purchase for the exercise price. I want to show the stock cost basis net of the option premium.

Put premium = $1,398.66

Stock assignment at stike price = $24,000 ($120 per share) - put was closed at $-0-

Quicken recorded the stock with a cost basis of $24,000 and a gain on the put as $1,398.66

I want to reflect the stock cost basis as $24,000 - $1,398.66 = $22,601.34 ($113.0067 per share). This is the way my broker account reflects the stock basis.

How can I correct this in Quicken?


  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭

    The correct accounting in this situation is to close out the Put at no gain or loss, leaving cash unchanged, and then to buy the stock at the strike price specified in the Put minus the cash received for selling the Put. Delete the transactions and do that.

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