Cover Call Premium Earning

How does one add the premiums which you earn when selling Covered Call Options? Would be great if it can be transacted and it can adjust your cost-average.

Thanks

Hi,

StocksCafe does not really work well with derivatives especially in Portfolio.

I would suggest to add this as a BUY for 0 then SELL for the premium in the Other Assets. Not sure if there are other better ways.

Cheers,
Evan

In hindsight, probably the easiest way is to use your fees transaction method but allow it to add a negative fee for covered calls. After all, the earned premiums do work towards lowers the acquired position cost average.

Yes, negative fees is possible.

I see. This make sense.

Thanks Evan. Could you add that as a feature too? Right now it refuses to allow negative fees to be added as a transaction.

Done. Removed the safety check of negative fees.

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Thanks Evan! Fantastic support! Much appreciated

Hey Derek,

Does this method work for sell puts as well?

Thank you.

Just curious, which broker do you use to trade Options? For covered call/put, do you use the same broker as your existing stock holdings so you can actually deliver your stocks against if you’re the Option Seller?
Thanks in advance.

I’m getting this error when I try to enter a negative value for a covered call. I tried both BUY and SELL options

I use TD Ameritrade for all my US Trades

Hi,

Can you give me more details? I assume that you are on this page -> https://stocks.cafe/personal/portfolio/transactions/update?label_id=-1

What are the values entered for each fields?

Thanks,
Evan

Thank you.

Besides TD Ameritrade, any other Friends who uses other broker to trade Options?

Specifically, wanted to know if anybody has experience selling Covered Options, and deliver your own equity position against that covered option (instead of unwinding on paper)? If your equity position is with one broker and Options trade with another broker, i wonder how this equity delivery is going to work.

Appreciate if any Friend could shed some light/advice. Thank you in advance.

Its for options…

So, this page - https://stocks.cafe/personal/assets/transactions/toadd

If I enter positive values, then P/L is shown as negative

I think for covered calls, the recommended approach by @derekehchew was to use the “Fees” approach.

Im not able to enter negative values in any of the methods, ie SELL and FEES. In sell, it gives me the, Sorry Something Went Wrong Issue, and In fees, it tells me I can enter only positive values.

In the screenshot, I’ve sold a call and collected premium, but the P&L is negative.

@evankoh I did follow your suggestion to Buy at 0 and then add the sell. That works for now. Only issue is that, it will mark it as a Closed Position,so I’ll need to update it later in case I buy it back…Thats not a major issue for now.

Thanks for your help

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Oh… Sorry! I kept thinking that you are adding it as a standard stock via portfolio transactions -> https://stocks.cafe/personal/portfolio/transactions?label_id=-1
For covered calls, this would work if you use negative “Fees” to indicate that you actually gain from the stocks.

But of course, Other Assets would also work!

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What the best method to record put order?

I realized if I input in portfolio it work if I have no open position. If I have a open position it will mess up the avg cost and p/l since it assume I have avg down at 0 cost with premium collected…

Will it be possible to combine other assets with portfolio page? So I can track it under 1 portfolio?

I also start doing a bit of options :slight_smile:

So, I might be adding a new simple feature for Options transactions specifically within 1-2 weeks!