FAQ - Options

Question

Can I record options transactions in GainsKeeper?

Answer

You can record your options transactions into your GainsKeeper account. We offer the following basic option functionality:

• The system will automatically identify a 3-26 character option as a put or a call based on the symbol entered. Users are not required to enter put or call, just enter the symbol. Different sources list options symbols differently. For example, option symbol IBMAJ may be listed as .IBAMJ, or -IBMAJ. When entering your options into GainsTracker, enter the pure symbol IBMAJ, 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 the 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 on or after 10/01. If we don't 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 entry of a variety of different transaction types for options. Click here for a complete list of option transaction types.

  Transaction	Description
  Buy to Open	Use this transaction to open a long option contract. (use with 'Buy Call Open' or 'Buy Put Open').
  Sell to Open	Use this transaction to sell or "write" a short option contract (use with 'Sell Covered Call')
  Buy to Close	Use this transaction to close or "offset" a short option. (use with 'Buy Call Close' or 'Buy Put Close').
  Buy to Close by ID	Use this option transaction to cover short by Specific ID.
  Sell to Close	Use this transaction to sell or "close" a long option. (use with 'Sell Call Close' or 'Sell  Put Close').
  Sell to Close by ID	Use this transaction to sell an option using the Specific ID method.
  Expire	Use this transaction to expire a call or put option by FIFO.
  Exercise Call	Use this transaction to exercise a call option by FIFO. This closes the call option contract and buys the underlying security.
  Exercise Call (Cover Short)	Use this transaction to exercise a call option to cover a short on the underlying security.
  Exercise Put	Use this transaction to exercise a put option by FIFO. This closes the put option contract and sells the underlying security.
  Exercise Put (Open Short)	Use this transaction to exercise a put option and sell short the underlying security.
  Cash Settled Exercise	Use this transaction to record a cash settled exercise.
  Cash Settled Assign	Use this transaction to record a cash settled assign.
  Assign Call	Use this transaction to assign a call option by FIFO. This closes the option contract and sells the underlying security.
  Assign Call (Open Short)	Use this transaction to assign a call option and sell short the underlying security.
  Assign Put	Use this transaction to assign a put option by FIFO. This closes the put option contract and buys the underlying security.
  Assign Put (Cover Short)	Use this transaction to assign a put option and cover a short in the underlying security.
  Cover Against the Box	Use this transaction to record contracts actually owned by the seller, but held in the box, meaning it is held for safekeeping.
  Deposit	Use the deposit transaction to add shares and cost basis for unusual transactions like voluntary corporate actions, transfers out, gifted shares, or to make minor share adjustments.
  Withdraw	Use this transaction to withdraw contracts.
  Adjusted Lot	Use this transaction to set the 'baseline date' to prevent a corporate action from processing against a position that you have adjusted.
  Adjusted Short	Use this transaction to record a short position in your account that you do not want tracked before a certain date (baseline date), that includes all proceeds information and any adjustments to the position prior to that date.
  Baseline	Use this transaction to record positions that you held open at the time your broker sent your trade data. In order to accurately calculate your gain/loss figures, input your cost basis and purchase dates for these baseline positions.
  Baseline Short	Use this transaction to record short positions that you held open at the time your broker sent your trade data.
  Option Split	Use this transaction to record an underlying security split for an option.
  Option Reorganization	Use this transaction to record an underlying security reorganization for an option.
  Option Merger	Use this transaction to record an underlying security merger.
  Option Leap Conversion	Use this transaction to enter an option leap Leap stands for Long-Term Equity Anticipation Securities. These are long-term option or index options, with expiration dates up to three years away. conversion.
  Option Name Change	Use this transaction to record a option name change.
  Transfer	Use this transaction to transfer contracts between brokerage accounts.
  Transfer by ID	Use this transaction to specify contracts to transfer between brokerage accounts.

   

• When recording options, you will need to enter in the number of contracts bought or sold. Next to the contracts field is an empty box representing the # 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 to 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, you should consult your tax advisor to determine if and how you could be affected by these rules.

• GainsKeeper will automatically process certain corporate actions on an option underlying security, such as leap rollover, CUSIP/name change, symbol conversion, stock split, stock dividend, and reverse split. GainsKeeper will also allow corporate actions on option underlying securities to be booked manually via Record Trades - Options. Click here for more information on corporate actions.

Example

Click here to view an example of recorded option information in the Trade Log and the Symbol Transaction History pages.