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Author Topic:   Entering Prior year Call Options
Nancy Ward
Member 		posted 08-05-2002 10:42 AM     Click Here to See the Profile for Nancy Ward   Click Here to Email Nancy Ward     Edit/Delete Message
Please explain what is entered into the A/L Screen Info section. I know the amount received should be negative. Should the proceeds section list the premium per share negatively? I entered the beginning balances as they were on the brokerage statement - positive. But the current balance comes up wrong. I really need a step-by-step explanation for the covered call options, sold. Also, purchased call options. Thanks.

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Pamela
Member 		posted 08-06-2002 04:54 PM     Click Here to See the Profile for Pamela   Click Here to Email Pamela     Edit/Delete Message
This question has been answered on the post: Call Options.

If the transaction occured in a previous year, go to the A/L screen and enter the necessary transaction information.The A/L screen should show:

  1. a negative cost basis
  2. a negative tax basis
  3. a negative unit/share quantity
  4. a positive proceeds
  5. a Traded options/warrants format type

The cost basis, tax basis, and units are negative because you haven't really "sold" that asset, only the option to sell the underlying shares.

The proceeds received at the time of the option transaction is a positive number as the funds were actually received.

The format type is "Traded Options/Warrants".

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David
Administrator 		posted 02-27-2008 04:10 PM     Click Here to See the Profile for David     Edit/Delete Message
Note Pamela's reply is for written options. If you are purchasing an option, enter as a regular investment purchase (you'll get a "buy security" prompt). For purchased options, numbers are postive, not negative.

- David
FNI Technical Support

[This message has been edited by David (edited 02-27-2008).]

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