Two good approaches. The one where each option symbol is commoditized more inline with how stocks are managed. But the second approach is also very interesting because it accounts for assignment risk. My brokerage also holds the collateral from available cash when I sell a put option, so maybe I can find a way to represent that too (which says exactly how much cash I have on hand to trade).
I will play around with this! On Tuesday, December 29, 2020 at 1:16:10 PM UTC-8 [email protected] wrote: > 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 >>>>>> >>>>>> -- >>>>>> You received this message because you are subscribed to the Google >>>>>> Groups "Beancount" group. >>>>>> To unsubscribe from this group and stop receiving emails from it, >>>>>> send an email to [email protected]. >>>>>> To view this discussion on the web visit >>>>>> https://groups.google.com/d/msgid/beancount/51c57efc-8915-4edd-981a-cb997c1f143cn%40googlegroups.com >>>>>> >>>>>> <https://groups.google.com/d/msgid/beancount/51c57efc-8915-4edd-981a-cb997c1f143cn%40googlegroups.com?utm_medium=email&utm_source=footer> >>>>>> . >>>>>> >>>>> -- >>>> You received this message because you are subscribed to the Google >>>> Groups "Beancount" group. >>>> To unsubscribe from this group and stop receiving emails from it, send >>>> an email to [email protected]. >>>> To view this discussion on the web visit >>>> https://groups.google.com/d/msgid/beancount/b12e5c7d-f2d7-4b9c-8131-3cac25b17810n%40googlegroups.com >>>> >>>> <https://groups.google.com/d/msgid/beancount/b12e5c7d-f2d7-4b9c-8131-3cac25b17810n%40googlegroups.com?utm_medium=email&utm_source=footer> >>>> . >>>> >>> -- >>> You received this message because you are subscribed to the Google >>> Groups "Beancount" group. >>> To unsubscribe from this group and stop receiving emails from it, send >>> an email to [email protected]. >>> To view this discussion on the web visit >>> https://groups.google.com/d/msgid/beancount/CAM6BLCwOUD47fZz6o0WroYjvPHFhLcHYfSft6bdwiDW1sC%2B%2BSw%40mail.gmail.com >>> >>> <https://groups.google.com/d/msgid/beancount/CAM6BLCwOUD47fZz6o0WroYjvPHFhLcHYfSft6bdwiDW1sC%2B%2BSw%40mail.gmail.com?utm_medium=email&utm_source=footer> >>> . >>> >> -- >> You received this message because you are subscribed to the Google Groups >> "Beancount" group. >> To unsubscribe from this group and stop receiving emails from it, send an >> email to [email protected]. >> > To view this discussion on the web visit >> https://groups.google.com/d/msgid/beancount/CAK21%2BhMp0mVafPWRtdPYgFiQ1GmPLfpZgfaY_fdJJ_oZW74gZA%40mail.gmail.com >> >> <https://groups.google.com/d/msgid/beancount/CAK21%2BhMp0mVafPWRtdPYgFiQ1GmPLfpZgfaY_fdJJ_oZW74gZA%40mail.gmail.com?utm_medium=email&utm_source=footer> >> . >> > -- You received this message because you are subscribed to the Google Groups "Beancount" group. 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