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How to Handle Selling Puts

Create a new investment to track the put.  When you sell a put, record a sell transaction in this investment.  To keep your total portfolio value correct, use the default cash account option to transfer the proceeds of your sell into your cash investment.  While the put is outstanding, update the put's investment with the price as desired.  Since you will own a negative number of shares in this investment, as the price goes down, your total portfolio value will increase, or if the price goes up, your portfolio value will decrease.

There are three possibilities on how the position will get closed:

  1. If the put expires, record a purchase in this investment at a price of $0/share to close the position.
  2. If you decide to repurchase the put, just record the purchase at the price you paid to buy back the option.
  3. If the shares are put to you, record a purchase in the put investment at $0/share, as well as a purchase in the underlying stock's investment at the option price.
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