Methods and systems for reconciling a forward conversion securities strategy

• US 20020194111A1
• Filed: 06/19/2001
• Published: 12/19/2002
• Est. Priority Date: 06/19/2001
• Status: Abandoned Application

• Current Assignee: Water Zone Technologies
• Original Assignee: Water Zone Technologies
• Inventors: Young, Shayne
• Application Number:
  US09/885,865
• Publication Number:
  US 20020194111A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Methods and systems for reconciling a forward conversion strategy are provided. A forward conversion strategy may include a long stock order, a long put order, and a short call order, for at least one security. The method may include automatic calculation of the following items/values for each forward conversion strategy in an account: a cost basis, multiple present values, and multiple unrealized gain/loss values. The method may include automatic display of the values described above on a first computer system. The present value may be determined on a periodic basis (e.g., daily, at user configurable times, and/or in real-time). A forward conversion strategy that is missing at least one of its parts may be automatically restored by automatically acquiring of the at least one missing securities position (e.g., buying the stock long, buying the long put, or selling the short call).

Claims

1. A computer-implemented method for reconciling a forward conversion strategy in an account, the method comprising:

automatically calculating a cost basis of the forward conversion strategy, wherein the forward conversion strategy comprises a long stock position, a long put position, and a short call position, for at least one security; and

automatically displaying the cost basis of the forward conversion strategy on a first computer system.

2. The method of claim 1, wherein the cost basis further comprises:

(a) subtracting a value representing a purchase of the long stock position;

(b) subtracting a value representing a purchase of the long put position;

(c) adding a value representing a sale of the short call position;

(d) adding a value representing proceeds of either the long put position or the short call position; and

(e) subtracting any expenses associated with (a) through (d).

3. The method of claim 2, wherein the expenses associated with (a) through (d) comprise commissions.

4. The method of claim 1, further comprising storing the cost basis in a memory coupled to the first computer system or in a memory coupled to a second computer system, and wherein the second computer system is coupled to the first computer system over a computer network.

5. The method of claim 4, wherein the computer network comprises the Internet.

6. The method of claim 1, further comprising receiving user configuration information comprising display format preferences.

7. A computer-implemented method for reconciling a forward conversion strategy in an account, the method comprising:

automatically calculating a present value of the forward conversion strategy, wherein the forward conversion strategy comprises a long stock position, a long put position, and a short call position, for at least one security; and

automatically displaying the present value of the forward conversion strategy on a first computer system.

8. The method of claim 7, wherein the present value further comprises:

(a) subtracting a value representing a purchase of the long stock position;

(b) subtracting a value representing a current value of the long put position;

(c) adding a value representing a current value of the short call position;

(d) adding a value representing proceeds of either the long put position or the short call position; and

(e) subtracting any expenses associated with (a) through (d).

9. The method of claim 8, wherein the expenses associated with (a) through (d) comprise commissions.

10. The method of claim 7, further comprising storing the present value in a memory coupled to the first computer system or in a memory coupled to a second computer system wherein the second computer system is coupled to the first computer system over a computer network.

11. The method of claim 10, wherein the computer network comprises the Internet.

12. The method of claim 7, further comprising:

determining the present value on a periodic basis.

13. The method of claim 12, wherein the periodic basis is daily.

14. The method of claim 12, wherein the periodic basis is user configurable.

15. The method of claim 7, further comprising:

determining the present value in real-time.

16. The method of claim 8, wherein the current value of the long put position comprises a mark-to-market price for the long put position.

17. The method of claim 8, wherein the current value of the short call position comprises a mark-to-market price for the short call position.

18. The method of claim 7, further comprising automatically creating an alert message if at least one of the long stock position, the long put position, or the short call position is missing from the account at the time of calculating the present value of the forward conversion strategy.

19. The method of claim 18, further comprising:

sending the alert message to a user, wherein the alert message notifies the user of parts missing from the forward conversion strategy.

20. The method of claim 7, further comprising automatically restoring the forward conversion strategy if at least one of the long stock position, the long put position, or the short call position is missing from the account at the time of calculating the present value of the forward conversion strategy.

21. The method of claim 20, wherein automatically restoring the forward conversion strategy comprises acquiring the at least one securities position that is missing from the forward conversion strategy.

22. The method of claim 7, further comprising receiving user configuration information comprising display format preferences.

24. The method of claim 23, further comprising:

automatically calculating the first present value for a first point in time; and

automatically calculating the second present value for a second point in time;

wherein the first point in time is chronologically before the second point in time.

25. The method of claim 24, wherein the first point in time is at a closing time of a first trading session.

26. The method of claim 24, wherein the second point in time is at a closing time of a second trading session.

27. The method of claim 24, wherein the first point in time is at a closing time of a first trading session, and the second point in time is at a closing time of a second trading session;

wherein the first trading session and the second trading session are consecutive.

28. The method of claim 23, wherein the present value further comprises:

(a) subtracting a value representing a purchase of the long stock position;

(b) subtracting a value representing a current value of the long put position;

(c) adding a value representing a current value of the short call position;

(d) adding a value representing proceeds of either the long put position or the short call position; and

(e) subtracting any expenses associated with (a) through (d).

29. The method of claim 28, wherein the expenses associated with (a) through (d) comprise commissions.

30. The method of claim 23, further comprising storing the present value in a memory coupled to the first computer system or in a memory coupled to a second computer system wherein the second computer system is coupled to the first computer system over a computer network.

31. The method of claim 30, wherein the computer network comprises the Internet.

32. The method of claim 23, further comprising:

determining the present value on a periodic basis.

33. The method of claim 32, wherein the periodic basis is daily.

34. The method of claim 32, wherein the periodic basis is user configurable.

35. The method of claim 23, further comprising:

determining the present value in real-time.

36. The method of claim 28, wherein the current value of the long put position comprises a mark-to-market price for the long put position.

37. The method of claim 28, wherein the current value of the short call position comprises a mark-to-market price for the short call position.

38. The method of claim 23, further comprising automatically creating an alert message if at least one of the long stock position, the long put position, or the short call position is missing from the account at the time of calculating the present value of the forward conversion strategy.

39. The method of claim 38, further comprising:

sending the alert message to a user, wherein the alert message notifies the user of parts missing from the forward conversion strategy.

40. The method of claim 23, further comprising automatically restoring the forward conversion strategy if at least one of the long stock, the long put, or the short call are missing from the account at the time of calculating the present value of the forward conversion strategy.

41. The method of claim 40, wherein automatically restoring the forward conversion strategy comprises acquiring the at least one securities position that is currently missing from the forward conversion strategy.

42. The method of claim 23, further comprising receiving user configuration information comprising display format preferences.

23. A computer-implemented method for reconciling a forward conversion strategy in an account, the method comprising:

automatically calculating a first present value of the forward conversion strategy, wherein the forward conversion strategy comprises a long stock position, a long put position, and a short call position, for at least one security;

automatically calculating a second present value of the forward conversion strategy; and

automatically displaying a difference between the second present value and the first present value on a first computer system.

43. A computer-implemented method for reconciling a forward conversion strategy in an account, the method comprising:

automatically calculating an unrealized gain/loss value for the forward conversion strategy, wherein the forward conversion strategy comprises a long stock position, a long put position, and a short call position, for at least one security; and

automatically displaying the unrealized gain/loss value for the forward conversion strategy on a first computer system.

44. The method of claim 43, wherein the unrealized gain/loss value further comprises:

automatically calculating a cost basis of the forward conversion strategy;

automatically calculating a present value of the forward conversion strategy; and

automatically displaying a difference between the present value and the cost basis of the forward conversion strategy on a first computer system.

45. The method of claim 44, wherein the cost basis further comprises:

(a) subtracting a value representing a purchase of the long stock position;

(b) subtracting a value representing a purchase of the long put position;

(c) adding a value representing a sale of the short call position;

(d) adding a value representing proceeds of either the long put position or the short call position; and

(e) subtracting any expenses associated with (a) through (d).

46. The method of claim 45, wherein the expenses associated with (a) through (d) comprise commissions.

47. The method of claim 44, further comprising storing the cost basis in a memory coupled to the first computer system or in a memory coupled to a second computer system, and wherein the second computer system is coupled to the first computer system over a computer network.

48. The method of claim 47, wherein the computer network comprises the Internet.

49. The method of claim 44, wherein the present value further comprises:

(a) subtracting a value representing a purchase of the long stock position;

(b) subtracting a value representing a current value of the long put position;

(c) adding a value representing a current value of the short call position;

adding a value representing proceeds of either the long put position or the short call position; and

(e) subtracting any expenses associated with (a) through (d).

50. The method of claim 49, wherein the expenses associated with (a) through (d) comprise commissions.

51. The method of claim 44, further comprising storing the present value in a memory coupled to the first computer system or in a memory coupled to a second computer system wherein the second computer system is coupled to the first computer system over a computer network.

52. The method of claim 44, further comprising:

determining the present value on a periodic basis.

53. The method of claim 52, wherein the periodic basis is daily.

54. The method of claim 52, wherein the periodic basis is user configurable.

55. The method of claim 44, further comprising:

determining the present value in real-time.

56. The method of claim 49, wherein the current value of the long put position comprises a mark-to-market price for the long put position.

57. The method of claim 49, wherein the current value of the short call position comprises a mark-to-market price for the short call position.

58. The method of claim 43, further comprising automatically creating an alert message if at least one of the long stock position, the long put position, or the short call position is missing from the account at the time of calculating the unrealized gain/loss value of the forward conversion strategy.

59. The method of claim 58, further comprising:

sending the alert message to a user, wherein the alert message notifies the user of parts missing from the forward conversion strategy.

60. The method of claim 43, further comprising receiving user configuration information comprising display format preferences.

61. The method of claim 43, further comprising automatically restoring the forward conversion strategy if at least one of the long stock position, the long put position, or the short call position is missing from the account at the time of calculating the present value of the forward conversion strategy.

62. The method of claim 61, wherein automatically restoring the forward conversion strategy comprises acquiring the at least one securities position that is currently missing from the forward conversion strategy.

63. A computer-implemented method for reconciling a forward conversion strategy in an account, the method comprising:

automatically calculating a cost basis of the forward conversion strategy, wherein the forward conversion strategy comprises a long stock position, a long put position, and a short call position, for at least one security;

automatically calculating a present value of the forward conversion strategy;

automatically displaying the cost basis of the forward conversion strategy on a first computer system; and

automatically displaying the present value of the forward conversion strategy on the first computer system.

64. A computer-implemented method for reconciling a forward conversion strategy in an account, the method comprising:

automatically calculating a cost basis of the forward conversion strategy, wherein the forward conversion strategy comprises a long stock position, a long put position, and a short call position, for at least one security;

automatically calculating a first present value of the forward conversion strategy;

automatically calculating a second present value of the forward conversion strategy;

automatically displaying the cost basis of the forward conversion strategy on a first computer system;

automatically displaying the first present value of the forward conversion strategy on the first computer system;

automatically displaying the second present value of the forward conversion strategy on the first computer system; and

automatically displaying a difference between the second present value and the first present value on the first computer system.

65. A computer-implemented method for reconciling a forward conversion strategy in an account, the method comprising:

automatically calculating a cost basis of the forward conversion strategy, wherein the forward conversion strategy comprises a long stock position, a long put position, and a short call position, for at least one security;

automatically calculating a first present value of the forward conversion strategy;

automatically calculating a second present value of the forward conversion strategy;

automatically calculating an unrealized gain/loss value for the forward conversion strategy;

automatically displaying the cost basis of the forward conversion strategy on a first computer system;

automatically displaying the first present value of the forward conversion strategy on the first computer system;

automatically displaying the second present value of the forward conversion strategy on the first computer system;

automatically displaying a difference between the second present value and the first present value on the first computer system; and

automatically displaying the unrealized gain/loss value for the forward conversion strategy on the first computer system.

66. A system configured to reconcile a forward conversion strategy comprising:

a first computer system coupled to a network, the first computer system comprising

(a) a memory configured to receive information regarding security orders for at least one security from a user interface, and (b) a display system configured to display the received information regarding the securities orders in a securities display format, wherein the securities orders affect the securities display format;

wherein the first computer system is configured to automatically calculate values related to the securities orders; and

wherein the first computer system or a second computer system is further configured to receive the calculated values related to the securities orders from the network and to display the calculated values related to the securities orders in the securities display format.

67. The system of claim 66, wherein the automatic calculating of the values related to the securities orders occurs in real-time.

68. The system of claim 66, wherein the automatic displaying of the values related to the securities orders occurs in real-time.

70. The carrier medium of claim 69, wherein the automatic calculating of the values related to the securities orders occurs in real-time.

71. The carrier medium of claim 69, wherein the automatic displaying of the values related to the securities orders occurs in real-time.

69. A carrier medium comprising program instructions, wherein the program instructions are executable to implement:

automatically calculating values related to securities orders, wherein the securities orders are received from a user interface, wherein the security orders comprise a long stock order, a long put order, and a short call order, for at least one security;

automatically displaying the calculated values related to the securities orders in a securities display format.