On Tue, Dec 29, 2020 at 11:24 AM Tuno Tunante <[email protected]> wrote:

> Hi,
>
> What I'm doing (I did the last yesterday) is like that:
>
> 2020-12-28 * "TD" "Sell Put MO 15 JAN 2021 Strike 40 @0.40" #Option #Put #
> MO #Sell
> Income:Options:TD -40.00 USD
> Expenses:Comission:TD 0.67 USD
> Assets:Account:TD 39.33 USD
> Assets:Options 4000.00 USD
> Liabilities:Opctions
>
>
>
>
>
>
Where's the option?


I do 6 or 7 per month. I use the Assets:Options and Liabilities:Options in
> order to have a complete view about the money I must reserve in case I'm
> assigned.
>

Rule #1 of options trading: never get assigned! ;-)



> Before each put, I check that Liabilities:Options is less that the money
> in Assets:account:TD
>
> Regards.
>
>
>
> On Tue, Dec 29, 2020 at 6:18 AM Rajath Agasthya <[email protected]>
> wrote:
>
>> Yeah, I figured each option could be a new commodity. I don't do a lot of
>> option trades, so I'm okay with having more commodities until something
>> better turns up.
>>
>> The thing I'm not sure of is how to represent a trade where I'm getting a
>> credit (from selling a put or even a short sale of a stock). I can't quite
>> seem to figure out the matching posting for this transaction if I represent
>> receiving credit as a posting into a cash account such as
>> Assets:US:Schwab:Cash. Any thoughts on how to do this or an example you
>> can share?
>>
>> Thanks!
>> On Monday, December 28, 2020 at 5:04:37 PM UTC-8 [email protected] wrote:
>>
>>> On Mon, Dec 28, 2020 at 5:47 PM Rajath Agasthya <[email protected]>
>>> wrote:
>>>
>>>> Hi all,
>>>>
>>>> First of all, thanks to all the contributors (especially Martin) for
>>>> this wonderful tool! I'm new to double entry accounting and Beancount, but
>>>> I'm blown away at how simple yet powerful this tool is, especially when
>>>> combined with Fava.
>>>>
>>>> I've been reading docs and I just started setting up my beancount file.
>>>> But as I setup my investment account, I'm a little bit lost as to how I
>>>> should manage option trades. The trades where there is a net debit is
>>>> straightforward (I think), but I'm not sure how to enter trades like
>>>> selling a covered call or a put or a spread/multi-leg option that result in
>>>> a credit.
>>>>
>>>> Are there some examples I can refer to on how to manage option trades?
>>>> The docs mention options trading as a future topic to be tackled and I
>>>> unfortunately couldn't find anything in the mailing list (perhaps I didn't
>>>> search properly). So if anyone can point me in the right direction, I would
>>>> really appreciate it.
>>>>
>>>
>>> I do options trading, but I only record simple options, never combos
>>> like this.
>>> - The option can be encoded in the symbol name. This makes a lot of new
>>> commodities to declare and put out of commissions. I haven't yet figured
>>> out what needs to be done to make this a bit nicer (e.g. allow user to
>>> define a commodity regex/pattern for these).
>>> - For stable asset types, I use leaf subaccounts; for options I don't
>>> (would be too many accounts, and it feels silly to create an account for a
>>> single position).
>>> - For options combinations/"strategies", if you have some way to trade
>>> all the legs instantly, you should be able to either (a) insert all the
>>> individual legs and their prices in a single transaction, or, if the
>>> product is already securitized by your broker, trade it like any other
>>> product (one leg with the derivative instrument).
>>>
>>> Hope this helps, you do have to get a bit creative if you trade options,
>>> but, well, you trade options, so you will be able to figure out something
>>> :-)
>>>
>>>
>>>
>>>>
>>>> Thanks,
>>>> Rajath
>>>>
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