Electronic Option Chart Visualizing Call Put Price Relationships
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Solution Overview
Problem
Conventional electronic option charts fail to intuitively convey the complex relationships and influences between call and put option prices, including checks, crosses, and price fluctuations, making it difficult for investors to grasp strategic trading opportunities.
Innovation Solution
An electronic option chart system that compares prices of call and put options with opposite strike prices, displaying price information such as opening, high, low, and current prices, and generating connection lines and triangle charts to illustrate price relationships and trends, facilitating intuitive understanding and prediction of price movements.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If conventional electronic option boards display option information in an enumerated format, then all option data can be provided, but investors cannot intuitively grasp the unique characteristics and price relationships of option products
Solution Approach 1:
The patent transforms the conventional one-dimensional enumerated list of option prices into a two-dimensional chart structure. The horizontal axis represents strike prices while the vertical axis represents option prices, creating a visual plane that naturally displays both call and put options. This dimensional transformation allows investors to intuitively grasp price relationships, checks, crosses, and mutual influences between opposite position options without losing any price information.
Solution Approach 2:
The patent segments the option market into two distinct but complementary sections: call options displayed in the upper portion and put options displayed in the lower portion of the chart. This segmentation allows investors to separately analyze each option type while simultaneously observing their price relationships. The segmented structure maintains clarity while revealing the interconnectedness of opposite position options through visual comparison.
2Loss of information
If the electronic option board shows all option prices, then complete information is available, but the interdependencies and mutual influences between call and put option prices cannot be grasped
Solution Approach 1:
The patent merges the display of call options and put options into a single integrated chart structure. By positioning call options in the upper portion and put options in the lower portion with shared strike price axes, the system combines both option types in one visual field. This merging enables investors to simultaneously observe price information for both call and put options and intuitively understand their checks, crosses, breakthrough points, and mutual influences without needing separate displays.
Solution Approach 2:
The patent employs color differentiation to distinguish between call options (typically displayed in the upper portion) and put options (typically displayed in the lower portion). This color coding system allows investors to quickly identify option types and track their price movements. The visual color cues enhance the ability to grasp price relationships and strategic trading opportunities such as straddles and strangles.
3Measurement precision
If conventional charts display option prices separately, then data accuracy is maintained, but strategic trading timing for straddle and strangle strategies cannot be easily identified
Solution Approach 1:
The patent adds a strategic analysis dimension to the traditional price display by incorporating visual indicators such as dashed lines connecting opposite position options, triangle charts showing price flows, and special markers for breakthrough and collision points. These dimensional additions enable investors to quickly identify straddle and strangle trading opportunities while maintaining accurate price data, significantly reducing the time required for strategic trading analysis.
Data Source
AI summary
A system and method for generating an electronic option chart includes an interface module to receive option information including information on a call option and a put option having a plurality of strike prices and a control module to generate the electronic option chart on the basis of the received option information, wherein the control module sets a predetermined first position of a first axis as a position of a call option and a predetermined second position of the first axis as position of a put option and sets the second axis as an axis representing a price, generates signals to display price information of each of a plurality of call option products having different strike prices at the first position of the first axis, and displays price information of each of a plurality of put option products having different strike prices at the second position of the first axis.