System and method for creating and trading packaged collar options on an exchange
US7562046B2 · kind B2 · utility
Assignee
Inventor
Key dates
| Filing date | May 4, 2005 |
| Grant date | Jul 14, 2009 |
| Priority date | — |
| Expiry date | Dec 10, 2026 |
Classification
- Technology area (CPC G)Physics
- CPC primaryG06Q40/04
- WIPO fieldIT methods for management
- WIPO sectorElectrical engineering
Abstract
A method of creating and trading packaged standard option collars on an exchange is provided, as well as a trading facility for trading such packaged standard option collars. Collars are created by identifying an underlying asset, a first leg of a collar is determined by determining the desired strike price for the first leg and selecting a standard option contract traded on the exchange having a strike price closest to the desired strike price. The second leg is determined by selecting another standard option, the opposite of the first leg, having an option price substantially offsetting the option price of the first leg. Once the legs of the collar have been selected the collar package may be listed on the exchange, and orders for the collars may be processed by matching orders for opposite positions in the collar.
Source: USPTO / EPO open patent data. Objective bibliographic and citation counts.