Recording Covered calls

Community UserCommunity User Member ✭✭✭✭
edited October 2018 in
I am still using Quicken 2001 which does not afford the opportunity to record the sale of covered calls.  The sale of a covered call is treated as a short term capital gain. I realize I could record the purchase and sale on the same date and treat it as a stock purchase but Quicken by now must have a way of recording it under the action button. Is there an easier way?

Comments

  • miklkmiklk SuperUser ✭✭✭✭✭
    edited February 2017
    When you sell a covered call it is just a simple short sale like any other security, stock, etc...When you cover, exercise, or are assigned: It is just a standard Cover Short Sale.That is the correct way to handle it like any other short sale so no extra items are required.
  • Community UserCommunity User Member ✭✭✭✭
    edited July 2016
    The problem when you record the covered call as a short sale it does not show up as a short term capital gain in the investment report.  Quicken needs to set up that sale so that the sale of the covered call will be reflected as a short term gain.
  • miklkmiklk SuperUser ✭✭✭✭✭
    edited February 2017
    Not the way I report them.In my opinion, it is just an open position and therefore NOT a capital gain or loss until the position is closed.(It is not a cap gain or loss until it is realized)
  • Rocket J SquirrelRocket J Squirrel SuperUser ✭✭✭✭✭
    edited October 2018
    Proceeds from sale of a covered call can also be a long term gain. This is true if (1) you've held the underlying security for over a year and (2) the call is exercised. So if you've held the underlying stock long term, there's no way for Quicken (or you) to know whether the gain is long or short until your position in the call is closed.--Edited by rlw at 04/19/2006 6:24 PM
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win7 Pro & Win10 Pro.
  • Community UserCommunity User Member ✭✭✭✭
    edited July 2016
    I have somewhat the same problem. I write covered calls. Sometimes Q lists my repurchases as Long-term gains and sometimes as Short-term gains. In every instance, they were short-term gains. It seems to handle options that expire worthless as well as options that get exercised properly, but when I repurchase the options, there seems to be no rhyme or reason as to how they categorize them. I am using 2004 Deluxe.
  • miklkmiklk SuperUser ✭✭✭✭✭
    edited February 2017
    That is a flaw (my opinion) that they decided to do ON PURPOSE.It is the trades that result in losses that are being reported Long term no matter what and there has been some other discussions on that BUT there really is nothing that can be done about that since it is there decision to do it like that.PS: It has nothing to do with covered calls but applies to ALL short sales.
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