Cost basis of short option (opening covered call transactions) is improperly presented on the Investment Portfolio Summary

wrsober's Avatar


04 Feb, 2023 09:59 PM

I searched the prior discussions and see similar comments in the past; but, I do not see a solution.

I have noticed this issue with many prior versions of Moneydance; but, I am currently using version 2022.6 (4097).

This is not a problem unique to one holding. It happens with all option short sales (I don't know if it also happens for short stock sales). We currently have eleven stocks that we own and have separately sold short call options on each of these holdings.

In every case, the cost basis (and the cost basis per share) are improperly presented. The amounts on the Portfolio Summary do not agree with the underlying transaction detail, In most cases, there is only one short sale transaction. Therefore, there should be no other complexity in computing the basis on the Portfolio Summary page.

For example, on February 1, 2023, I sold six covered call option contracts at a price of 1.03 per share or 103 per contract. In addition, Fidelity assessed fees totaling 4.09 for the transaction. Therefore, I received total cash of 613.91 on the transaction. ((6*103)-4.09). My basis for the short transaction should be a total of 613.91 or 102.23 per contract.

The Moneydance cost per share is 9,708.74 and the total cost basis is -58,252.43. It appears as thought the portfolio summary page computes the total cost basis by multiplying the shares by the cost per share as the number of shares is -6 (which makes sense to me as it is a short position.) But the cost per share is not correct and I am not able to recompute the 9,708.74.

It is tempting to include snips of the screen; but, I have concluded it will not help anymore than the above narrative.

Similar per share, basis amount computation errors exist for the ten other short option positions. In most of the eleven cases, there is only one short sale transaction.

FYI, the current value amount is properly computed to be -618 (I do not have option prices being updated through the price quote update - I don't know if they can be updated; but, I don't need it as I rely on Fidelity for updates to the option prices during the holding period. The current value should equal the price for the originating transaction, -6*103.

Since the basis is wrong and the current value is correct, the percentage change is also incorrect. It shows a percentage change of -98.93%, while the percentage change should be small and would be caused by the Fidelity transaction fees because the prices are not updated.

The error exists whether the investment is identified as a stock or an option. Meanwhile, nothing is presented as the cost basis if lot matching is chosen for either a short stock or a short option. This does not make sense either as lot matching should not change the basis per share computation.

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