How to Handle Buying Calls
The tracking
of purchased calls is straight forward. Create a new
investment for the calls and record the purchase just as
you would for a stock.
There are three
possibilities on how the position will get closed:
- If the call expires
worthless, record a sell in this investment at a
price of $0/share to close the position.
- If you decide to sell
the call before it expires, just record the sell
at the price you received. This is identical to
how you would track a stock.
- If you exercise the call, record a sell in the call investment
at $0/share, as well as a purchase in the underlying stock's
investment at the option price.
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