Options – Exercise / Assignments

It may be a personal preference whether you choose to log “Options Assignments / Exercises” as a Stock trade (in the Stock Trading Log) or keep it in the Options Trading Log. Our thoughts are to always keep it simple in the name of providing the best analysis for ‘you’.

The two preferences are:

1) Close (and/or) Open the Option position in the Options Trading Log by entering a .00001 in the Exit Price column, and then enter the new position (on a new row). Make sure of the following… in your Options Analysis sheet, you should have an Entry Strategy (Code and Description) that includes the possibility of an “Assigned” position.

The Entry Strategy for this type of trade could, for example, have a Code and Description of:

  • Code: A.O.P.
  • Description: Assigned Option Position.

Now, ‘tag’ the trade accordingly in the Entry Strategy column of the Trading Log (below the blue Equity-curve graph) so the trade will appear in the Options Analysis sheet once the trade is finally Closed (with a Gross P&L entry).

2) Or, treat it as a new Stock trade if you have on of the following TJS product versions: (Stock/Options or All Markets). If this is your preferred method, then you would create any new assignments in the Stock Trading Log.

The Entry Strategy for this type of trade could, for example, have a Code and Description of:

  • Code: A.O.P.
  • Description: Assigned Option Position.

So, do whichever makes most sense to you and your trading style, and then remain consistent with it for each and every similar trade to achieve optimal analysis.