tag:infinitekind.tenderapp.com,2009-01-14:/discussions/investments/5988-how-do-i-record-option-expiryInfinite Kind: Discussion 2021-09-08T22:00:22Ztag:infinitekind.tenderapp.com,2009-01-14:Comment/492398352021-06-09T21:51:26Z2021-06-09T21:51:26ZHow do I record option expiry?<div><p>I'm a fellow user.</p>
<p>In Moneydance you have to enter a marrying transaction.</p>
<p>I assume that when you took out the option contract you entered a Short transaction that had the number of shares involved the exercise price and the total, which put a positive balance in the investment account, this balance would not be reflected in the side bar or account balance but would appear in reports.</p>
<p>When you allow the option to lapse you have to enter a similar transaction in Moneydance as if you had exercised the option, it is the amount and the description/memo that indicates it lapsed. Values cannot just be removed in Moneydance they have to be canceled out.</p>
<p>To cancel out the transaction (or marry it) you have to enter a Cover transaction, the details are basically the same as the short transaction with the addition in the fee field of any premium you had to pay. This results in a negative balance in the account for any premium payed which you account for by a transfer from whatever account the premium was paid from thus zeroing the balance.</p>
<p>For every Short transaction in an account there has to be a corresponding Cover transaction entered at some point.</p></div>dwg