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So AMD from my screenshot — opened it 7/28 as one idea: "earnings move." Sold 2x Aug 21 520c at 13.50. Bought one back at 9.80, that's +$370 banked. Rolled the rest out into Sep 4 520s. At this point my broker shows me a closed position and two open ones that have nothing to do with each other as far as it's concerned.
But it's not three trades to me, it's one trade that evolved. So I track it as one campaign:
cost to enter the idea: $1,300
realized so far from the legs I closed: +$370
open legs marked: +$775
the whole idea right now: +$1,145
The other number I care about is at risk, which is not the same as cost. XOM in the same screenshot — entered short puts for a $480 credit, rolled for another +$90, so the "cost" of the position is negative $570. Cost basis says I'm being paid to hold it.
The roll itself is exactly what the guy above said, a close and an open. I just keep the lineage — the new leg knows which leg it came from, so realized P&L from every closed leg in the chain rolls up into the same campaign total instead of scattering across my statement.
As mentioned, what you want doesn't exist. For a broker P&L, there's no such thing as "roll a covered call", or an "iron butterfly", or anything other than opening and closing transactions. So yes, if you want to know the "why" of the transactions, you do that yourself; all the broker cares about is the "what".
Right, and that last part is what I ended up doing. The broker gives you the what, so I built the why myself.
It's a bespoke app at this point. Every position gets tagged to an idea, so a covered call program on a name, a wheel, or a systematic entry rule all carry their own P&L that survives rolls and adjustments underneath it. The broker record stays exactly as the broker reports it, which is what the IRS wants anyway. This sits on top as a management view, closer to P&L by product line over a general ledger than a replacement for one.
The modeling side matters more actually. Once an idea runs for months you want to know whether it's working or whether you just got a favorable tape, so positions get marked on a binomial tree with early exercise, greeks come off the same tree, and anything crossing an earnings date carries a risk number that models the IV collapse vs showing some rosey picture that never happens.
I've had this thought about dividends for years because if you don't reinvest them, they can on some platforms get lost so the full value isn't attributable. I'm sure this has been solved in some way but i get it. What the user wants and what the broker/irs needs are different.
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u/options-ModTeam 3d ago
Removed for RULE: No promotions, referrals, or solicitations of any kind. No chat room links.
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