How to handle options granted at no cost and exercised - I hold MFF and was granted free options (MFFO) to exercise at $2.60 which I have now done. How do I handle this in Sharesight to handle the free options being exercised?
I continue to hold additional Options I purchased which I have not yet exercised as well so would like to know how to handle those too when exercised if there is a difference?
I am also asking the question. Currently just added it as an opening balance … cost is $0.31 as it was on the 22/10
I am in the same position re MFF/MFFOA.asx and also PIC/PICOA.asx, same questions.
Hi @Duffshot38 
if you have received options at no cost, add them as an opening balance at 0 cost in your portfolio. Add a ‘cancellation trade’ at cost, for the quantity you’ve exercised, and then you just need to add that quantity as a ‘buy’ trade to the ordinary share.
I just exercised MFFOA into MFF also.
Sharesight tells me it would treat a cancellation as a sell trade for CGT purposes. I therefore think it would be incorrect to treat this as a cancellation, because then it appears on the Capital Gain report for the year which is incorrect. The CGT treatment should be carried over of this into the MFF underlying share. Surely this should instead be handled as a merge of holding? However if one tries to do a merge, then the cost base =0 which is incorrect, since the cost base should be adjusted to the premium paid to exercise the option ($2.60 per share).
Please advise Sharesight and @Piumi_Sharesight
If you enter the cancellation price at cost it won’t show on the CGT report as long as the cancellation price = the cost base
Thanks. I missed the 0 ‘at cost’ in prior email. This makes sense and have done this.
Hi, if you cancel the options purchased at cost. Should you not add the option price to the exercise price so you get a real refection of the cost of the shares?
Hi, if I buy 100 options for $0.02 and 100 for $0.03 in one company and subsequently exercise all at $0.10. when the option price is $0.01 what do I need to do against the options, as it seems I have a loss at this point that needs to be reflected? But do I add the remaining option price i.e. $0.01 to the exercise price i.e. $0.10 to make the share start price $0.11 ?