club_cafe: entering Options Manually

John Medio (john@gewarges.com) on

In my club, we just set them up as an "unlisted investment".
Unfortunately we had to update the price by hand though.

-----Original Message-----
From: club_cafe-owner@bivio.com [mailto:club_cafe-owner@bivio.com] On
Behalf Of Carl F. Page, II
Sent: Thursday, January 06, 2005 2:24 PM
To: club_cafe@bivio.com
Subject: club_cafe: entering Options Manually

We purchased some "Calls" and they did not come over into Bivio? How
would I go about entering them manually?

Rob Nagler on

John Medio \(john@gewarges.com\) writes:
> In my club, we just set them up as an "unlisted investment".
> Unfortunately we had to update the price by hand though.

Manually accounting for calls is quite tricky from a tax perspective.
ActivePartnership is a new service design to handle options which
includes automatic pricing. To learn more, visit:

http://www.bivio.com/hm/active-partnership.html

If you have an AccountSync broker, you would get the transactions
imported automatically.

Rob

Rip West on

Rob said....

<<Manually accounting for calls is quite tricky from a tax perspective.>>

That's very true. In the case of writing covered calls there are three possible outcomes. It is not impossible to account for these outcomes by workarounds, but it gets very tricky, especially in getting the dates correct. In addition to that there is a problem that I have never been able to work around. That is how to value the covered call from the time that you write it until it has expired or been exercised. Since it is, in effect, a short sale, you have to have a way to input a negative position in your valuation statement, and have that value fluctuate with the market price of the call.

As Rob said, bivio offers a premium service to take care of those problems. I would never try to account for covered calls manually using the basic program.

Rip West
Saint Paul, MN

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