exercised 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 Exercised

Since all option contracts give the buyer the right to buy or sell a given stock at a set price (the strike price), when an option is exercised someone has exercised their rights and you may be forced to buy the stock (the stock is put to you) at the PUT option strike price, or you may be forced to sell the stock (the stock is called away from you) at the CALL option strike price

To exercise your option, just follow the steps listed below:

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

    The exercise date of the specific option

    If you want to modify the excise date of the option, you can manually enter the date or choose from the dropdown calendar.

    2. Account The account name to which the specific option belongs. Choose the specific account name from the account list. If you choose All Accounts, 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 5, the shares of the option is 500.
    5.Matched Option ID The ID of the specific option record
    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 any important 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.

  4. After you have pressed the OK button, the following new record will be displayed:The row outlined in red displays the the Exercised Option record.Note: In TradeMatch, 207 and 209 represent the ID of the symbol, 0 means the the share of the matched stock after option exercised.
  5. You can cancel this action with the Undo Button in the trade tab.


Option Dialog box provides the users with possible setting for TradeMax , the users can set different preference for account according to their requirement in General option , filter some unwanted information when running specific reports in Black list option, set your own washsale calculation rule to apply to your own wash sale scenarios in Wash Sale option.

The following wizard will tell you how to make your own settings based on your needs in different options.

  1. Click main button , and a main menu opens:
  2. Click Options button, the following dialog box displays:

General Tab Users can set the basic setting and possible preference after clicking General Tab. This is the default option.
Wash sale Tab Set your own calculation rule for your transactions by clicking Wash Sale Tab.
Black List Tab TradeMax provides you with Black List to filter some information of various reports. With this feature, you can choose to display the information you want by selecting transaction type or Security Ticker to generate the specific report.
Avg Basis Tab TradeMax allow you use Average Basis Method For Mutual Fund Cost Basis Calculating. With this feature, You can figure your gain or loss using an average basis only if you acquired the funds at various times and prices.
Name Enter your name, the name will display in your generated reports
SSN Enter your Social Security Number.
Turn Automatic LiveUpdata on (recommended) You can check the box on the left side to activate Live Update Function, and each time you run TradeMax, the automated Live update dialog box will pop up.
Automatically Scan for Trades You can check the box on the left side to activate Auto Scan function, TradeMax will auto scan your imported transaction.
Exercised / Assigned security ‘s buy/ sell price must be the same as strike price of option You can check the box on the left side to activate the function, TradeMax will auto-match your Exercised/ Assigned securities’ Buy/Sell price with the strike price of option.
Auto Expire unexercised / unassigned options at 0 price on Expiration Date You can check the box on the left side to activate the function, TradeMax will auto expire unexercised/ unassigned options at 0 price on expiration date.
Auto Assigned / Exercised Option to Stock after Split / Reserve Split Event You can check the box on the left side to activate the function, TradeMax will auto assigned / exercised option to stock after split / reserve split event.
Transaction Amount Tolerance Value You can enter a transaction tolerance value to allow transactions to exceed amount within certain tolerances.TradeMax follow the calculation as the formula : Amount = Price * Quantity + Commision , if your abs(Amount – Price * Quantity – Commision)>tolerance value, trademax will give you a warning message.
Long Term Capital Gain Holding Period The default long term capital gain holding period is One year.
Tax Currency The default Tax currency is USD.
Clear Report Cache Every time you run reports in TradeMax, the database will leave report cache which sync the change of the report data . If your report data cache occupies too much space , you can click this button to clear Report Cache. Your report cache will be cleared, but the new report cache will be generated when you run reports once more.
Database Path Click to view your database path.


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