On Sat, Feb 13, 2021 at 3:04 PM Ben Blount <b...@bben.us> wrote:
> 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.
>
That's not going to work, because of two reasons: using the lot-date as the
expiration will fail for vertical spreads (as you point out), which are a
most popular building block, but more importantly, the cost of the option
isn't the strike, and that's going to mess up the P/L part of the
transaction. Much better to use TD symbols (e.g. RUT_031921C2400), which
BTW, are naturally fitting the Beancount commodity syntax, and to leverage
Beancount's ability to compute P/L.
>
> On Sat, Feb 13, 2021 at 10:34 AM Rahul Kuchhal <ra...@kuchhal.com> 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 tinot...@gmail.com
>>> 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 <bl...@furius.ca> wrote:
>>>>
>>>>> On Tue, Dec 29, 2020 at 11:24 AM Tuno Tunante <tinot...@gmail.com>
>>>>> 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 <rajatha...@gmail.com>
>>>>>> 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 bl...@furius.ca
>>>>>>> wrote:
>>>>>>>
>>>>>>>> On Mon, Dec 28, 2020 at 5:47 PM Rajath Agasthya <
>>>>>>>> rajatha...@gmail.com> 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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