Recording Covered Calls in Quicken Mac

ChocolateLabMan
ChocolateLabMan Quicken Mac Subscription Member
edited November 25 in Investing (Mac)

How do I record a covered call w Quicken Mac? I am interested in knowing the initial transaction (selling the call option against shares that I already own) and then how to record the following circumstances:

  • closing that call (Buy to Cover?)
  • recording what happens if the option expires out of the money
  • recording what happens if the option gets excercised/assigned

Thanks!

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Best Answer

  • Quicken Kristina
    Quicken Kristina Quicken Windows Subscription Moderator mod
    Answer ✓

    Hello @ChocolateLabMan,

    Thank you for reaching out! How did you record the initial option? Did you record it as a Sell transaction in your Quicken?

    Buy to Cover is intended to close out a short position, which isn't quite the same as closing a call.

    Since Quicken for Mac doesn't really have any dedicated transaction types for options, and doesn't have any help articles on how to document options, you would probably want to use a Buy transaction to record the cost as an expense and close out the call.

    If the call expires, a Buy transaction for the cost of $0 should work to close it out.

    If the option does get exercised/assigned, then probably a Sell transaction for the stock and a Buy transaction for the underlying call at $0 should work to document it.

    I hope this helps!

    Quicken Kristina

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Answers

  • Quicken Kristina
    Quicken Kristina Quicken Windows Subscription Moderator mod
    Answer ✓

    Hello @ChocolateLabMan,

    Thank you for reaching out! How did you record the initial option? Did you record it as a Sell transaction in your Quicken?

    Buy to Cover is intended to close out a short position, which isn't quite the same as closing a call.

    Since Quicken for Mac doesn't really have any dedicated transaction types for options, and doesn't have any help articles on how to document options, you would probably want to use a Buy transaction to record the cost as an expense and close out the call.

    If the call expires, a Buy transaction for the cost of $0 should work to close it out.

    If the option does get exercised/assigned, then probably a Sell transaction for the stock and a Buy transaction for the underlying call at $0 should work to document it.

    I hope this helps!

    Quicken Kristina

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  • ChocolateLabMan
    ChocolateLabMan Quicken Mac Subscription Member

    It DOES! Thank you!

  • ChocolateLabMan
    ChocolateLabMan Quicken Mac Subscription Member

    BTW, I recorded it as a Short Sell transaction. When it times out (or gets assigned), per your advice, I record it as a Buy transaction for the option (and a separate sale transaction for the underlying security).

  • Quicken Kristina
    Quicken Kristina Quicken Windows Subscription Moderator mod

    Thank you for the follow-up,

    I'm glad to hear that information helped!

    If you need further assistance, please feel free to reach out!

    Quicken Kristina

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