I write (sell to open) puts on margin for “short premium” on my personal account.
The contract note for an opening transaction lists a number of components:
• contract number
• option symbol
• strike price
• option type
• number of contracts
• price ($) per share
• trade date
• expiry date
• clearing house fee
• brokerage (commission)
• gross premium value ($)
• nett premium value ($)
• initial margin
The initial margin is NOT deducted from the premium received. It is swept from my cash account.
Most months I’ll average about 60 open positions that I’ll hold to expiry or assignment.
It has become quite hectic with adjustments for dividends, share splits, partial assignments and other events.
My Excel spreadsheet, which replaced my Calc spreadsheet, has now also grown too large to manage.
I am hoping that GnuCash will help me track my positions as my portfolio expands across other brokers.
So, following the advice for How to record a written put option in double-entry accounting? I have created Liabilities:Open Positions. But this is where I become lost.
I also need to deal with 1 of 2 possible outcomes: expiry or liquidation.
The expiry notice lists the basics of the contract note including the trade value and the amount of the margin returned to my cash account. These only happen at expiry.
The liquidation notices also states the clearing house fee for assignment. These can happen at anytime.
This GnuCash noob needs plently of hand holding...