Unified Option Trading System

• US 20170330279A1
• Filed: 11/16/2015
• Published: 11/16/2017
• Est. Priority Date: 11/14/2014
• Status: Active Application

• Current Assignee: Hector Jose Maximiliano Ponzone
• Original Assignee: Hector Jose Maximiliano Ponzone
• Inventors: Ponzone, Hector Jose Maximiliano
• Application Number:
  US15/526,565
• Publication Number:
  US 20170330279A1
• Time in Patent Office: Days
• CPC Class Codes: G06Q 20/0658 e-cash managed locally
• CPC Class Codes: G06Q 2220/00 Business processing using cryptography
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: H04L 9/50 using hash chains, e.g. blockchains or hash trees

Abstract

A unified option trading system allows a user non-spreadsheet based access to an extended set of data relating to options trading, including allowing positions to be displayed in a calculator format which allows easy comparison of multiple positions and easy manipulation of variables relating to a given position to test different related scenarios, as well as trading in cryptocurrency. The unified option trading system also keeps track of relevant numbers as they apply in real time to a multitude of strategies to serve a traders specific strategies. The unified system also offers uniform population of data across different modules, uniform display of icons for quick recognition of a position and easy access to positions via messaging. Options for a product may be displayed in a chain, each populating a calculator automatically, multiple trading accounts, an option prediction calculator, and a market scanning module which scans for desired options.

Claims

1. A unified option trading system, for use in managing a portfolio having a plurality of positions in a plurality of financial products in at least a first market, each of the positions in turn having dates for action associated therewith and a position type associated therewith, the unified option trading system comprising:

a summary module, the summary module operative to track each of such positions and each of such dates and furthermore to display each of such positions and each of such dates;

a calculator module operative to spawn a plurality of calculator module instances;

a plurality of calculator module instance types, each calculator module instance type being selected from the group consisting of;

call, put, call spread, put spread, married put, collars, covered calls, puts, synthetic covered calls, naked calls, naked puts, straddle, strangle, calendar, diagonal, butterfly, iron butterfly, condor, iron condor, combo, futures options, futures spreads, futures option spreads, fence, barrier options, American option, Asian option, Bermudan option, Boston option, Canary option, European option, Israeli option, Russian option, Verde option, Parisian option, capped-style option, compound option, shout option, double option, swing option, exotic option, cross option, quanto option, exchange option, basket option, rainbow option, low exchange price option, lookback option, binary option, chooser option, forward start option, cliquet option and combinations thereof;

a plurality of calculator module instance data structure types, each calculator module instance data structure type being associated with one calculator module instance type;

first and second calculator instances spawned by the calculator module, each calculator instance having one calculator instance module type and one calculator module instance data structure, and displaying respective first and second of such positions, the calculator module when spawning the calculator instances automatically assigning the appropriate calculator instance module type thereto based upon such position types associated with such positions;

each calculator instance having two display modes, a smaller display mode and a larger display mode, and displaying in the larger mode stock purchase price, number of shares, call strike, call expiry, put strike, put expiry, dividend, stock commissions, options commissions, regulatory fees, stock current price, earnings date, ex dividend date, position type, date of entry, status, gross premium, days held, number of options contracts, total capital investment, total capital investment with fees, total fees, in the money intrinsic value, in the money loss, capital gains per share, total capital gains, effective premium, effective premium if exercised, breakeven maximum risk dollar amount, maximum risk percentage, ROI percentage, ROI if exercised, average monthly ROI, annualized ROI, income, income if exercised, tax liability, tax liability if exercised, current breakeven price, current strike price, and original strike price;

a position overview module having the first and second calculator instances displayed therein, side by side, thus allowing easy comparison between such first and second positions;

an open positions editing module displaying a third such position which is open, such third position being in a third financial product, and furthermore displaying an option chain of such positions, associated with such third financial product, the open positions editing module further operative to allow changes to such third position, in particular, each of such positions in the option chain being an active link operative when selected to activate the calculator module and spawn a new calculator instance automatically populated with data from such selected position;

a closed positions module retaining and displaying a fourth such position which is closed, such fourth position being in a fourth financial product, and furthermore displaying a history chain of such closed positions associated with such fourth financial product, the closed positions having active links to one another, the closed positions module further displaying a chronological index linked to such positions;

a market scanner module operative to search such first market by means of an electronic network according to a first set of selectable parameters and to return any market data which matches the first set of parameters and to update the unified option trading system;

an option scanner module operative to search such first market by means of an electronic network according to a second set of selectable parameters and to return any additional such options available on such first market which match the second set of parameters and to update the option chain with such additional options;

a bridge module operative to calculate and display at least one member selected from the group consisting of;

reserve capital, starting capital, percent stock, currency of display, max permissible positions per sector, max permissible positions per industry, deposited funds, withdrawn funds, open income, closed income, open capital investment, closed capital investment, current capital, remaining capital, starting account value, current account value, account tax open positions, account tax closed positions, account tax open and closed positions, average risk per position expressed as an amount of currency, average risk per position expressed as a percentage of position value, total risk expressed in currency, total fees open positions, total fees closed positions, total fees open and closed positions, total capital gains open positions, total capital gains closed positions, total capital gains open and closed positions, open positions associated with this account, closed positions associated with this account and combinations thereof;

wherein the various modules can access data from other modules and are operative to populate one another;

and further comprising a unified iconography and a unified abbreviation system used by all modules of the unified option trading system;

and further wherein the unified option trading system of the invention is not a spreadsheet.

2. The option trading system of claim 1, further comprising:

a first data field associated with each position, the first data field containing therein an indicator of a first date;

wherein the first date is one member selected from the group consisting of;

such dates for action, an expiry date, an option date, ex-dividend date, earnings date, date of position entry, length of time position has been open, date position closed, dividend pay date, and combinations thereof.

3. The option trading system of claim 2, wherein the uniform iconography further comprises:

a group of symbols, each symbol indicating a status of a position having an original stock price, a current stock price, breakeven price, original strike price, current strike price, management fees and a potential profit, the symbols including;

a) a first symbol indicating current stock price is above the break even and original strike prices;

b) a second symbol indicating the current stock price is such that immediate closing of the position would be profitable;

c) a third symbol indicating that the current stock price is below the break even and original strike prices;

d) a fourth symbol indicating that the current stock price is above the breakeven price but lower than the original strike price due to management of position;

e) a fifth symbol indicating that the current stock price is above the breakeven price but below the original strike price;

f) a sixth symbol indicating that the current stock price is above the break even and strike prices but due to management of the position the current strike price is below the original strike price;

g) a seventh symbol indicating that the breakeven price is above the original stock price and original strike price but below the current strike price;

h) an eighth symbol indicating that the breakeven price is above the current strike price and the current strike price is above the original stock purchase price and original strike price;

I) a ninth symbol indicating that the current strike price is below the original strike price and the breakeven price is above the original strike price and original stock price.

4. The option trading system of claim 3, further comprising:

a help module operative to provide one member selected from the group consisting of;

context sensitive explanations, iconography definitions, stock symbol lookup, option type lookup, financial terminology lookup and combinations thereof.

5. The option trading system of claim 4, further comprising:

a position closing module, operative to change an open position to a closed position, and in the event that a position is modified further operative to create a new open position, and add the new position to the associated option chain and add the closed position to the history chain;

an editable notes field associated with each such position, the position closing module further operative to prompt for input of additional information to such editable notes field, including text information, regarding the change in position.

6. The option trading system of claim 5, further comprising:

a note input module automatically entering into the editable notes field the first date, an indication of a position change.

7. The option trading system of claim 6, further comprising:

a message module operative to send a message, the message containing one member of the group consisting of;

a) one such position, b) a link operative to directly display such position without displaying other modules of the option trading system and without displaying other positions, and c) combinations thereof.

8. The option trading system of claim 7, further comprising:

a non-volatile memory in a computer processor unit, the option trading system and such positions recorded upon the non-volatile memory, the option trading system further operative to change ownership of an option at opening and closing of an option.

9. The option trading system of claim 8, wherein:

the summary module is further operative to track and display at least one member selected from the group consisting of;

stock ticker prices, position type, weight per stock in portfolio, sector allocation, industry allocation, income per position, total monthly income, weight of total return per position, portfolio progress through time, amount of open and closed income per position, income realized in closed positions, tax liability, charts based upon the relevant data, such dates for action, an expiry date, an option date, ex-dividend date, earnings date, date of position entry, length of time position has been open, date position closed, dividend pay date, and combinations thereof.

10. The option trading system of claim 1, wherein:

the first set of selectable parameters used by the market scanner module further comprises;

stock price, ROI, down side protection, in-the-money or out-of-the-money options, expiration date, comparisons to moving averages, corporation market cap, corporation earnings, corporation PE ratio, corporation owners, corporation nationality, and combinations thereof;

and the second set of selectable parameters used by the options scanner module further comprises;

stock price, ROI, down side protection, in-the-money or out-of-the-money options, expiration date, comparisons to moving averages, corporation market cap, corporation earnings, corporation PE ratio, corporation owners, corporation nationality, and combinations thereof.

11. A calculator module for use in an option trading package and for managing a portfolio in at least a first market, the portfolio having a plurality of positions in a plurality of financial products including at least a first and a second position in respective first and second financial products, each of the positions in turn having dates for action associated therewith and a position type associated therewith and a plurality of financial data associated therewith, the calculator module comprising:

a primary module operative to spawn first and second calculator module instances respectively associated with such first and second positions, each calculator module instance being given a calculator module instance type associated with such position type of such financial product, a calculator module instance data structure, a calculator module instance display format;

each calculator module instance having one calculator module instance type, each calculator module instance type being selected from the group consisting of;

call, put, call spread, put spread, married put, collars, covered calls, puts, synthetic covered calls, naked calls, naked puts, straddle, strangle, calendar, diagonal, butterfly, iron butterfly, condor, iron condor, combo, futures options, futures spreads, futures option spreads, fence, barrier options, American option, Asian option, Bermudan option, Boston option, Canary option, European option, Israeli option, Russian option, Verde option, Parisian option, capped-style option, compound option, shout option, double option, swing option, exotic option, cross option, quanto option, exchange option, basket option, rainbow option, low exchange price option, lookback option, binary option, chooser option, forward start option, cliquet option and combinations thereof;

each calculator module instance data structure having a calculator module instance data structure type, each calculator module data structure type being associated with one calculator module instance type, each calculator module instance data structure having a subset group of variable fields relevant to such calculator module instance type, the subset group of variable fields containing such plurality of financial data associated with such position;

each calculator module instance display format being associated with one calculator module instance type;

a display module operative in a first mode to display the first calculator module instance using the associated calculator module instance display format, the display module in the first mode displaying at least first and second members of such plurality of financial data associated with such first position;

the calculator module operative to accept an input, the input altering at least one of such displayed members of such plurality of financial data associated with such first position, the calculator module further operative to recalculate all of such plurality of financial data associated with such first position based upon the input;

the display module operative in a second mode to display the first and second calculator module instances using their respective associated calculator module instance display format, the first and second calculator module instances being displayed side by side so as to allow easy comparison of the first and second positions;

the calculator module further comprising a closed positions module retaining and displaying such first position when such first position is closed, and furthermore displaying a chain of retained closed positions associated with such first financial product, the closed positions module further displaying a chronological index linked to such positions.

12. A position tracking module for use in an option trading package and for managing a portfolio having a plurality of positions in a plurality of financial products in at least a first market, the plurality of positions including at least a first and a second position in respective first and second financial products, each of the positions in turn having dates for action associated therewith and a position type associated therewith and a plurality of financial data associated therewith, the position tracking module comprising:

a database having a plurality of position data structures, each position data structure having a plurality of data fields, each position data structure being associated with a respective one of such positions;

a first data field of each associated position data structure being an indicator of the type of option trading strategy of such associated position;

a second data field of each associated position data structure being an indicator of the open or closed status of such associated position;

a third data field of each position data structure being an indicator of the identity of such financial product;

a fourth data field of each position data structure being an indicator of one member of the group consisting of;

a) a previous such position, if any, in such financial product, which such previous position was altered to create such associated position, b) a later such position, if any, in such financial product, which such later position was created by altering such associated position, and c) combinations thereof;

the database retaining the position data structure associated with every one of such positions both before and after every alteration of such position and regardless of open and closed status, whereby every position ever held is retained in the dataset;

a chronological index of all retained position data structures;

a history chain, the history chain comprising a series of closed position data structures selected from the database, each member of the series of closed position data structures selected for being related to a particular one of such financial products, the closed position data structures of the history chain being linked in order according to the fourth data field of each one of the series of closed position data structures of the history chain;

a calculator module operative to spawn a plurality of calculator module instances, each one of the calculator module instances associated with a respective one position data structure of the option chain;

a message access module operative to send a message and if requested to display a calculator module associated with a respective one of the position data structures of the database without displaying other modules of such option trading package.

13. The position tracking module of claim 12, further comprising:

a plurality of calculator module instance types, each calculator module instance having a fifth data field indicating its type, each calculator module instance type being selected from the group consisting of;

call, put, call spread, put spread, married put, collars, covered calls, puts, synthetic covered calls, naked calls, naked puts, straddle, strangle, calendar, diagonal, butterfly, iron butterfly, condor, iron condor, combo, futures options, futures spreads, futures option spreads, fence, barrier options, American option, Asian option, Bermudan option, Boston option, Canary option, European option, Israeli option, Russian option, Verde option, Parisian option, capped-style option, compound option, shout option, double option, swing option, exotic option, cross option, quanto option, exchange option, basket option, rainbow option, low exchange price option, lookback option, binary option, chooser option, forward start option, cliquet option and combinations thereof.

14. The position tracking module of claim 12, further comprising:

a help module operative to provide one member selected from the group consisting of;

context sensitive explanations, iconography definitions, stock symbol lookup, option type lookup, financial terminology lookup and combinations thereof.

15. The position tracking module of claim 14, wherein:

the chronological index further comprises, an index by month and year.

16. The position tracking module of claim 12, wherein:

the position data structures further comprise a sixth data field indicating one member selected from the list consisting of;

industry, bid, ask, purchase price, income, tax, commission, breakeven price, premium history, option activity history, dividends, and combinations thereof.

17. The position tracking module of claim 12, further comprising:

an option scanner module operative to search such first market by means of an electronic network according to a set of selectable parameters and to return any such options available on such first market which match the set of parameters and to update the option trading package;

the option scanner module operative to display an option chain;

the option chain comprising a list of such positions associated with a particular one of such financial products, each of such positions in the option chain being an active link operative when selected to activate the calculator module and spawn a new calculator instance automatically populated with data from such selected position.

18. The position tracking module of claim 12, further comprising:

a non-volatile memory in a computer processor unit, the position tracking module and database recorded upon the non-volatile memory, the position tracking module further operative to change ownership of an option at opening and closing of an option.

19. The position tracking module of claim 12, further comprising:

a cryptocurrency module operative to display monetary valuations denominated in a cryptocurrency, and further operative to transact trades by way of a cryptocurrency exchange network.

20. The position tracking module of claim 19, further comprising:

The cryptocurrency module operative to transact trades by way of the cryptocurrency exchange network when such trades a denominated in a currency other than the cryptocurrency.