|
Does TradeMax support option assigned/exercised cost calculation? |
Q:Does TradeMax support option assigned/exercised cost calculation?
A:We can ensure you our software handles it. If option is assigned or exercised, our software will automatically adjust the cost. The option which is assigned or exercised will not trigger any immediate realized gain or loss on our report. However, when TradeMax generate report, your relevant option/stock position will carry deferred option cost. This is a very important feature of TradeMax!
But TradeMax don’t associate any irrelevant option and stock position. 2 conditions need to be met:
- The strike price, qty of option with stock exercised/assigned price.
- Occurred at same time.
We have attached a screenshot from our demo account which shows an option assigned to stock position.
From all the brokers report we have seen from our customer, we have not seen any broker finish their gain and loss report flawless, especially if customer has merge event and option assigned, expired, exercised.
However, we found a problem, this problem derives from the stock transactions where either our purchase resulted from the exercise on us of Put Options we had sold, to assign the shares to us at the strike price of the option, or our sale resulted from the exercise on us of Call Options we had sold, to take as an assignment from us at the strike price shares subject to the exercise of the Call Option. So far, we have not run into stock with options exercised on both the purchase and sale; but that may well have happened.
