strike price |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.
http://www.itrademax.com/ipress/detailed-instructions/adjust-trades/split-trades.htm

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

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.

Adjust Options


TradeMax provides you with a powerful function to adjust your options .

  • 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.
  • Option ExercisedSince 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 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
  • Option Expired For an option contract , expiration is the date on which the contract expires. The option holder must elect to exercise the option or allow it to expire, and become worthless..

    Typically, option contracts expire according to a pre-determined calendar.

Note: You should select the specific option record first ,right click the mouse, the Option Adjustment option will appear in the list.

Column Headers Definitions


The headers on the columns in the grid have the following meanings.

Column Header Meaning
Action Action name in TradeMax.
Long   –— Buy Stock/Option to Open a Long position
Short  –— Sell Stock/Option to Open a Short position
CloseLong  –— Sell Stock/Option to Close a Long position
CloseShort –— Buy Stock/Option to Close a Short position

ActionName Action name in your brokerage trade history.
For example, Buy, sell, dividend, Journal, stock merge etc.
Account Trade account in TradeMax
Amount Trade amount
Base Amount The “Base Amount” will be calculated automatically when you enter the“Base Rate“.
USD Amount The “USD Amount” will be calculated automatically when you enter the“USD Rate
Commission Trade broker commissions (Including fees)
Base Commission Automatically calculates Base Commission by Commission* Base Rate.
USD Commission Automatically calculates USD Commission by Base Commission* USD Rate.
Base Currency Domestic currency type or accounting currency type for accounting purposes. Currently IB allows customer to choose different basis currency other than USD.
USD Currency Settlement currency for tax purposes
OCurrency Original Trade Currency type
DeferCost Deferloss produced by wash sales from the previous year
ExpireDate Expiry date of option or future.
ID Trade ID in TradeMax.
Market Exchange market where you bought the financial product. For instance, NASDAQ.
Notes Any information of the trade record
Price Security price
Base Price The share price in Base currency price.
USD Price The share price in USD Currency price.
Quantity Number of shares
Rate Option or future rate. An option has a 100 “Rate” which means an option contract is for 100 shares of the underlying stock.
Base Rate The exchange rate Original Currency/ Base Currency.
USD Rate The exchange rate Original Currency/ USD Currency.
Selt Rate The exchange rate of Base Currency / USD Currency. Or directly query the Selt Rate in “Currency Exchange”.
StrikePrice The strike price of the underlying stock in the option or future
Symbol Security Ticker Symbol
TickerMatch The strike price of the underlying stock in the option or future
TradeDate Trade date
TradeTime Trade time
TradeMatch The amount of “Force-Match” for tax purpose.
Type Security type. For instance, stocks and mutual funds, options on stocks, Single-Stock-Futures, futures, currencies etc.
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