Question
Can I record option transactions?
Answer
You can record your options transactions into your GainsKeeper account. We offer the following basic options functionality:
The system will automatically identify the option as a put or call based on the symbol entered. You do not have to enter "put" or "call", just enter the symbol.
Different sources list options symbols differently. For example, option symbol IBMAJ may be listed as .IBMAJ, -IBMAJ, or IBMAJ. When entering your options into GainsTracker, enter the pure symbol, without the period or dash.
GainsKeeper maintains all options starting with options expiring in October 2001. If necessary, you can enter options expiring prior to October using our Add Option Symbol link. The Add Option Symbol will automatically display if you attempt to enter a symbol that GainsKeeper does not recognize. You should only use this for options expiring prior to 10/01. If we do not recognize an option expiring on or after 10/01, please contact us via My Help, so that we can resolve the matter.
GainsKeeper currently allows you to enter 7 transaction types. Click here to view a list of the transaction types:
Buy to Open - Open a long option contract (use with 'Buy Call Option' or 'Buy Put Open')
Sell to Close - Sell or "close" a long option (use with 'Sell Call Close' or 'Sell Put Close')
Sell to Open - Sell or "write" a short option contract (use with 'Sell Covered Call')
Buy to Close - Close or "offset" a short option (use with 'Buy Call Close' or 'Buy Put Close')
Expire - Expire an option contract
Exercise - Use when you as the holder of an option contract, exercise your right to buy (in the case of a call) or sell (in the case of a put) the underlying security
Assign - Use when you are required as the writer of an option contract to sell (in the case of a call) or purchase (in the case of a put) the underlying security at the specified strike price
When recording options, you need to enter the number of contracts bought or sold. Notice that next to the contract field is an empty box representing the number of shares per contract. GainsKeeper currently defaults to the standard 100 shares per contract. If the option you are entering contains a number of shares per contract different than 100, you can override our default setting by entering the new number into this box. This share number is important for pricing, wash sales, and gain/loss calculations.
Wash Sales: GainsKeeper will detect and adjust cost for wash sales across options of the same symbol. If you sell a call option for a loss, and then purchase the same call option within the 61-day wash sale window, GainsKeeper will defer the loss and add it to the basis of the option. The same scenario applies for the sale and purchase of put options.
GainsKeeper does not adjust for wash sales if you sell the equity at a loss and then open a call option for the same equity within the wash sale window. GainsKeeper also does not currently adjust for straddle tax implications. If you use straddle strategies, consult your tax advisor to determine if and how you could be affected by these rules.