How do I record option expiry?

Andrew's Avatar


09 Jun, 2021 08:53 PM

I have some put options that expired a while back. I can't figure out how to record that fact.

I tried editing the security to set an expiry date. I see no field for one, though. There is an "Exercise Month" field, but it won't let me set a specific date, and MD doesn't seem to treat it as expired for purposes of graphs and reports. (e.g. asset allocation still shows a slice for the options, and they still appear in my portfolio view).

I also tried recording a sale on the expiry date at a price of $0, but it refuses to take; the price reverts to $100 when I hit enter. Presumably that's a default value of some sort, I've seen it elsewhere when importing things.

I'm not sure what else to try.

  1. 1 Posted by dwg on 09 Jun, 2021 09:51 PM

    dwg's Avatar

    I'm a fellow user.

    In Moneydance you have to enter a marrying transaction.

    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.

    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.

    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.

    For every Short transaction in an account there has to be a corresponding Cover transaction entered at some point.

  2. System closed this discussion on 08 Sep, 2021 10:00 PM.

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