how to understand portfolio price + distribution chart

[shalam]

i created this chart for my portfolio to compare it with Dow Jones Index. Now on 4/20/2010 something happened in my portfolio such that the value dropped almost 10%+.

is there a way i can get into the details of how that happened? i am not even sure it happened but it could have and it would be really uesful knowing.

fundmanagersoftware now has my brokerage transaction details. so it should be possible to investigate.

thank you!

http://img.skitch.com/20100726-ka9knart ... 4arysy.jpg

[Mark]

Hi shalam,

I'd suggest looking at an investment transaction report covering the days of the large drop, to see if anything got recorded incorrectly. It looks like something had a large negative performance impact, like maybe an account fee, or a large percentage drop. In addition, you can look at the portfolio value graph, to see if there was a large drop on that same day. If so, drill down into the investments, by looking at investment based graphs.

[shalam]

i discovered what the source of the value fluctuation was. It was an option whose price appears incorrect on 4/21/10.

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for further reference the investment in question is
IBN Jan 22 2011 5.0 Put

on 4/20/10 its value was 0.05
on 4/21/10 its value shows up as 21077.10

investigated into price register. and it appears that the software is picking up IBN's price.

solved this mystery. no prices before 4/21. so value of portfolio dropped dramatically on 4/21 - because large negative price multiplied by 495.

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btw, i have sold 5 of these options. why does the number show up as 495!? so i have -5.

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upon further investigation in the option data register, and looking at the investment transactions, i find this.
4/23/10 -5 Redemption OPTION POSITION CHANGE
9/18/09 -495 Redemption Adjustment to obtain retrieved balance


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more research reveals that yahoo has a ticker for this option. IBN110122P00005000
on page
http://finance.yahoo.com/q?s=IBN110122P00005000

but when i enter this ticker using properties, software is unable to retrieve prices.
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so options in front appear to be:
close the option investment. implied question is whether to close all option investments? now if i close an investment, or choose not to reflect it, then would it not affect the gain calculation as well as balance in the cash account?

or is it, that i need to use some other symbol for this option? TDAmeritrade now uses the long form option symbol that and the software does not seem to like that.

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i know the post if all jumbled up.
you can just reply to what you suggest i do to handle this.

trying hard to use your software. it is great, but i am not yet up to it.

[Mark]

Hi shalam,

A couple of points on options that I think will help...

1) To retrieve option prices, you have to set your option investment to retrieve from "Yahoo (Options)". The regular Yahoo quote server will not retrieve them. To do this, go to "Investment Properties... / Internet Retrieve". The long form of the symbol should be fine.

2) When retrieving options from your broker, Fund Manager records the share quantity at 100 * # contracts, in order to get the value correct. It seems like your redemption on 4/23/10 should be for 500 shares, not 5. All investments (including options) have their value determined by the closing price times the number of shares owned.