>
> 1) Is there any downside of attaching so many currencies to a single
> account?
For beancount's core tools probably not. It may not work nicely with
tooling like Fava's holdings report.
2) Is there a way to represent these transactions using the same currency
> over and over (based on the cost basis and date of options)
That gives me an idea. Cost has a date and label field. When omitted, date
is set to the date of the posting which created the lot, and the label is
None.
However you could totally use these for your own purposes:
2020-12-28 * "STO March 1 PUT 200 on HOOL"
Assets:Brokerage:Taxable:HOOL:Options -1 HOOLPUT {1000 USD, 2021-03-01}
Assets:Brokerage:Taxable:Cash 1000 USD
2020-12-30 * "BTC March 1 PUT 200 on HOOL"
Assets:Brokerage:Taxable:HOOL:Options 1 HOOLPUT {2021-03-01} @ 990
USD ; Notice how you can omit the price here since there's a unique match
already. If you had STO that same put at more than one price you'd need to
put the price+date on the BTC unless you are closing the whole position.
Assets:Brokerage:Taxable:Cash -990 USD
Income:PnL
Variations include setting the label as the type of option so you can use
the same commodity for puts and calls. The approach above is the decent
balance IMO. I'd still recommend making the option commodity specific so
you can see your holdings rolled up independent of what account they are in.
On Sat, Feb 13, 2021 at 10:34 AM Rahul Kuchhal <[email protected]> wrote:
> I am also trying to figure out the best way to represent Sold options that
> open new positions.
>
> The suggested approach below works (kind of).
>
> 2020-12-28 * "Sell March 1 PUT 200 on HOOL"
> Assets:Brokerage:Taxable:HOOL:Options -1 HOOL_PUT_200_2021_03_01
> {1000 USD}
> Assets:Brokerage:Taxable:Cash 1000 USD
>
> Seems like I would need to add a new currency to HOOL:Options account each
> time I open a new position. Overtime I suspect this may result in hundreds
> (or even thousands) of currencies attached to a single account.
>
> 1) Is there any downside of attaching so many currencies to a single
> account?
> 2) Is there a way to represent these transactions using the same currency
> over and over (based on the cost basis and date of options)
>
> 2020-12-28 * "STO March 1 PUT 200 on HOOL"
> Assets:Brokerage:Taxable:HOOL:Options -1 Options {1000 USD}
> Assets:Brokerage:Taxable:Cash 1000 USD
>
> 2020-12-30 * "BTC March 1 PUT 200 on HOOL"
> Assets:Brokerage:Taxable:HOOL:Options 1 Options {1000 USD} @ 990 USD
> Assets:Brokerage:Taxable:Cash -990 USD
> Income:PnL
>
>
>
> On Tuesday, December 29, 2020 at 5:11:26 PM UTC-5 Rajath wrote:
>
>> 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
>>>>>>>>
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