assigned option |Form 8949 Capital Gain & Wash Sales calculator software

Does your software handle splits and reverse splits on opitons?

Q:Does your software handle splits and reverse splits, including dealing with options whose underlying has split/reverse split on opitons?

A:TradeMax can handle splits and reverse splits events including dealing with options.

TradeMax will auto assigned / exercised option to stock after split / reserve split event.(even the strike price or quantity will change)

In the following case,URE has a split(1 for 5) event on 04/15/2010,TradeMax will automatch the PUT Option URC100417p00009000 assigned strike price from $9 to $45,qty from 20 to 4,On gain&loss report our software will defer split option’s cost to correct underlying stock.

stock options split  match

If you enabled warning message on “Auto Assigned / Exercised Option to Stock after Split / Reserve Split Event” function in options TradeMax will give you a warning on such case

Option Assigned

Option Assigned happens when short stock options positions opened by an options writer is assigned for fulfillment. The short options positions disappear and the options writer sells the underlying stock if call options were written or buys the underlying stock if put options were written. Assignment can happen randomly for short in the money options before expiration even though assignment is mandatory for short in the money options during options expiration in what is known as an Automatic Assignment. This tutorial covers the different options assignment issues that you might face in options trading.

  1. Select the specific option record you want to assign.
  2. Right-click the record, then select Option Adjustment > Option Assigned as the following menu shows:
  3. An Option Assigned dialog box will pop up:
  4. Function
    1.Transaction Date

    The assignment date of the specific option

    If you want to modify the assignment date of the option, you can manually enter the date or click the Down Arrow then choose from the dropdown calendar.

    2. Account The account name to which the specific option belong. Choose the specific account name from the account list. If you choose All Account, event will apply to all accounts.
    3.Security Name The name of the specific option record
    4.Number of Contracts

    The quantity of the specific option. For example, the number of contract is 10, the shares of the option is 1000.
    5.Matched Option ID The ID of the specific symbol
    6.Matched Stock
    If the option you want to exercise does have the matched stock, you can choose from the dropdown list , if it hasn’t , it will apply to < auto add stock transaction> generated by TradeMax automatically.

    The description of the specific option will be displayed automatically. You can leave it blank or enter anyimportant events and brief notes here.

    After checking all the information you have entered, press OK button to continue the process or click the CANCEL button to cancel the process.

  5. After you have pressed OK button, the following new record will be displayed
  6. The row outlined in red displays the Assigned Option record.

    Notes: In TradeMatch, 207 and 213 represent the ID of the symbol, 0 means the the share of the matched stock after option assigned.

  7. You can cancel this action with the Undo Button in the trade tab.
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