Considerations
Use this page to manually record an underlying security reorganization for an option.
Click one of the icons above to view either a list of the transactions available for that category, or click the Baseline Holdings icon to access the Add New Baseline Holdings page.
Procedure
From the Manually Record Trades page, click the Option icon to access the Options - Record Transaction page. From this page, select Option Reorganization from the Action drop-down list. The Options - Record Option Reorganization Transaction page displays.
Select the account to which to record this transaction, from the In Account drop-down list. If you only have one account, this drop-down list is not displayed.
By default, the Option Category on this page is set to Option on a Stock. You can select one of the following from this field to change the option category:
Option on a Stock
Option on an Index
Option on a Currency
Option on an ETF
Option on a Future
By default, the Action on this page is set to Option Reorganization. To change this, select a different transaction from the Action drop-down list. The fields that display depend on the transaction that is selected.
Enter the date of the transaction in the Transaction Date (mm/dd/yyyy) field. You can also click the Calendar icon and select the appropriate transaction date from the calendar that displays.
Enter the 3-26 character pure option symbol in the Symbol field. Do not enter dashes, periods or plus signs. Click Verify to confirm you have entered the correct symbol for the option.
Enter the 3-26 character pure option symbol by entering each of the following parameters:
Root Symbol
Expiration date mm/dd/yyyy
Strike Price
Select Put or Call
Once you enter the parameters, click Verify to confirm you have entered the correct symbol for the option.
Click the Option Symbol Lookup link to access the option symbol builder tool. This tool enables you to search for an existing option, or to build a custom option.
Enter the reorganization ratio in the Reorganization Ratio field. The ratio can be entered as a ratio (1:2) or it can be entered as a single number in relation to 1 (.5).
Enter the new 3-26 character pure option symbol in the New Symbol field. Do not enter dashes, periods or plus signs. Click Verify to confirm you have entered the correct symbol for the option. To search for an option symbol or create a custom option, click the Option Symbol Lookup link.
To record the Option Reorganization transaction, click the Record button. To record the transaction and continue to enter additional transactions, click the Record & Repeat button. To leave this page, without recording the transaction, click the Cancel button.
Example
Click here to view an example of the Options - Record Option Reorganization Transaction page.
Click any of the numbered areas below to view the procedure step for the selected field.
GainsKeeper® provides automated or manual interface corporate action functionality for single deliverable options and single stock futures. GainsKeeper® treats all gain and loss resulting from corporate actions as non-taxable given the absence of specific federal income tax guidance regarding the tax consequences of corporate actions relating to options. Limitations in this functionality may adversely affect cost basis tracking and the application of the appropriate tax treatment. Neither GainsKeeper®, nor Wolters Kluwer Financial Services, provides tax advice. You should contact your own tax or legal advisor in order to determine the appropriate tax consequences and reporting of such treatment as it applies to your specific circumstances. GainsKeeper® assumes no responsibility or liabilities, including for any tax penalties or related interest charge resulting directly or indirectly from the consequences of such treatment of corporate actions and its processing.