Search on the mailing-list I'm pretty sure this came up before.
I'd have recognized call options using a unique symbol at zero cost and
6.19 is the strike.
Then on exercise reducing them while simultaneously opening a position in
the company at the current value, reducing the cash account by the strike
times the number of units and adding a posting for the profit to be
recognized as income.
On Tue, Apr 6, 2021 at 6:27 AM Tuomas Salmi <salmi.tuo...@gmail.com> wrote:
> Thanks for reply. Looks like my terminology is a bit off since I this is
> first time I have had to think about this in English.
> What I meant was that my employer gave me 10 options which let me to
> purchase stocks with the fixed price which was set when options were given
> to me. In this case I can buy COMPANY for 6.19 euros regardless of the real
> rate of the COMPANY in stock market. So I think you are right about
> "exercise" being the correct term.
>
> > Your transactions seems incomplete to me.
> > You will want to represent the options themselves using a unique
> instrument name with the strike, side (put/call) and expiration
> data embedded in the symbol.
> > You will want to carefully adjust the sales price vs. cost basis and
> recognize the P/L to the right account if this is a company incentive (I
> believe the initial P/L may be treated as income tax, not gains).
>
> Do you have any example of representing options like this? I think in
> Finland the initial P/L is treated as income tax. However, for my personal
> ledger in general I'm not too concerned about taxing details since almost
> all personal taxing process is done by taxing organization in Finland. So I
> don't usually track those details in my personal ledger and I'm happy with
> having the correct balances on each of my accounts. However, I suppose I
> might have to be a bit more careful in this case.
>
> To be honest I think for my purposes it would be enough to just add 10
> COMPANY stocks to my Assets:OtherBank:Company with correct sales price and
> deduce the 61.90e from my cash bank account.
>
> maanantai 5. huhtikuuta 2021 klo 8.23.48 UTC+3 bl...@furius.ca kirjoitti:
>
>> Hi Tuomas,
>> I don't understand your terminology.
>> "Marking" is the process of valuing active positions for the purpose of
>> calculation unrealized P/L.
>> I think you mean "exercise."
>>
>> On Sun, Apr 4, 2021 at 6:49 AM Tuomas Salmi <salmi....@gmail.com> wrote:
>>
>>>
>>> Recently my employer let me to mark some stock options I had and I'm
>>> having trouble to add them properly to the Beancount ledger.
>>>
>>> Lets say I had 10 options letting me to buy 10 stocks of COMPANY. Looks
>>> like the transaction will be made first to my incentive bank account and
>>> then I'll transfer the bought stocks to my actual bank which holds my
>>> stocks.
>>>
>>> I tried the following:
>>>
>>> 2021-03-31 * "Mark options"
>>> Assets:OP:BankAccount -61.90 EUR
>>> Assets:IncentiveBankAccount:Company 10 COMPANY {6.19 EUR}
>>>
>>> 2021-04-01 * "Transfer stocks to other bank account"
>>> Assets:IncentiveBankAccount:Company -10
>>> COMPANY
>>> Assets:OtherBank:Company 10 COMPANY
>>>
>>> The beancheck accepts this syntax. However when I check the account
>>> balances in the Fava, I see that the end balance for "IncentiveBankAccount"
>>> is:
>>> 61.90 EUR
>>> -10 COMPANY
>>>
>>> So it seems like the Beancount will use two separate units for the
>>> "IncentiveBankAccount".
>>>
>>
>> You need to use the cost basis on your transfer.
>>
>> Your transactions seems incomplete to me.
>> You will want to represent the options themselves using a unique
>> instrument name with the strike, side (put/call) and expiration
>> data embedded in the symbol.
>> You will want to carefully adjust the sales price vs. cost basis and
>> recognize the P/L to the right account if this is a company incentive (I
>> believe the initial P/L may be treated as income tax, not gains).
>> There is much to say.
>>
>>
>>
>>
>>>
>>> So how should I mark the following transactions to get all this sorted
>>> out:
>>> 1. Pay 61.90 EUR from my cash bank account to buy 10 COMPANY stocks to
>>> IncentiveBankAccount account (balance -> 10 COMPANY)
>>> 2. Move 10 COMPANY from IncentiveBankAccount to OtherBank:Company
>>> (balance 10 -> 0 COMPANY in incentive)
>>>
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>>>
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