Hi,

I count only the money in my account and control the sum of possible
assignments. I don't have an "entity" option.

For the options, I sell puts of stocks I want to buy and I have the money
for doing it. So if it's assigned, no problem ;-)

On Tue, Dec 29, 2020 at 6:47 PM Martin Blais <[email protected]> wrote:

> 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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