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

Does TradeMax support option assigned/exercised cost calculation?

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:

  1. The strike price, qty of option with stock exercised/assigned price.
  2. Occurred at same time.

We have attached a screenshot from our demo account which shows an option assigned to stock position.

From all the broker reports we have seen from our customers, we have not seen any broker finish their gain and loss report flawless, especially if the customer has merge events and options assigned, expired and/or exercised.

However, we found a problem, and this problem arises from the stock transactions where either our purchase resulting from the exercise of Put Options we had sold, or in assigning the shares to us at the strike price of the option, or by our sales resulting from the exercise of Call Options we had sold, or by taking 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.

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.

Scan Trade Status

After you import the trade data into TradeMax, some trades will be displayed in Red or Green, we can use function Scan to scan the trade status so as to view the detailed information of these Red or Green trades in Information Grid. The following will tell you how to scan trade status in TradeMax :

  1. Click the Information Tab at the down-left corner of user interface of TradeMax.
  2. The Information Grid will extend, then click Scan Tab in Information Grid or just click Scan Tab in Trade Panel to display detailed information of unmatched Trades.
  3. Function Description
    1. Red Records Red records indicate the error transaction:

    a.If there is no position on hold, a close action(Sale to Close, Buy to Cover) will generate errors.

    b.when option exercised or assigned, the strike price of the option didn’t match the underlying stock trade price.

    c. When option exercised or assigned, the quantity of the option didn’t match the underlying stock trade quantity..

    d. When the option expired, the close price is not zero.

    e. Missing/Inconsistent Data fields by using Qty, Price, Commission, Fees and Rate information.

    2. Green Record Green records indicate that the closed transactions (A Sale to Close, a Buy to Cover ) close all your holding open position.
    3. Information Grid Information Grid display error trades after scanning.

    Error Trades may caused by the wrong action , quantity, sequence of the trade.

    Note: You should manually adjust the action , quantity, sequence of the trade to correct these errors.

    4. Scan You can click the Scan button to scan inaccurate trade status.
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