recording option to stock conversion.

I bought some calls which I let expire so as to have the stock delivered to me. I can not figure out a "Quicken assisted" method to close out the option position and roll the cost of the option into the basis of the stock delivered to me. Can Quicken handle this? As I understand it tax-wise, Since I took possession of the stock I do not have to report any gain/loss (in my case a gain) until I sell the stock and the holding period for the stock starts on the day of delivery of the stock (not when I took the position in the option).
If I do it "manually" I can sell the option for what it cost me and then buy the stock at strike price + commission + option cost + option commission. It is "tax accurate" and not too hard to implement but doesn't really capture the transaction "flow"....
any help apprecaited!
Thanks, Jim
Reply to
Jim_the_geek
This is unclear. Did you exercise the option and buy X shares for $Y? Or, did you (as you said) let the option expire and not get any stock?
I haven't traded options in decades, but I always thought of the option as a completely separate security from the stock it's tied to. Each is bought for a price and sold for a profit or loss.
Reply to
Stubby
Stubby:
Sorry. I bought a call option which was in-the-money at expiration and so I let stock be delivered.
I bought $35 call option on BHP and on day of expiration the stock was selling for $42 so I had the shares delivered to me for which I paid $35/share.
So for tax purposes (and to keep Quicken from posting things I don't want posted to my capital gains report) I think I can do what I said below, but was wondering if Quicken offered a more elegant solution ;-)
Thanks, Jim
Reply to
Jim_the_geek

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.