System and method for operating a principal preservation fund based upon option cost per week
OwnerGeoffrey A. VanderPalinventor
Life of this patent
Estimating the term…
Abstract
Disclosed is a system and method for operating an investment account which provides a predetermined level of principle preservation while achieving growth by investing gains from zero or low-risk stable investments into options. In one form, the investment account may be owned by an individual investor or by a number of investors, such as in the form of a mutual fund. In yet another form, business logic may be programmed to automatically select the options based upon their associated premium cost per week until expiration.
Claims20
A method for operating a principal preservation fund comprising the steps of:
- receiving a principal cash investment from at least a first investor;
- investing said principal cash investment into a first set of stable interest bearing accounts to generate a first return;
- calculating a first value indicating the premium cost per week prior to expiration for each of a plurality of options;
- calculating a second value indicating the proximity of the strike price to the spot price of the underlying instrument for at least a subset of said plurality of options;
- selecting at least one option from said plurality of options based upon said first value and said second value;
- purchasing said at least one option using said first return;
- disposing of said at least one option to generate a second return;
- and
- investing said second return into a second set of stable interest bearing accounts.
A method for operating a principal preservation fund having a stated preservation percentage comprising the steps of:
- receiving a principal cash investment from at least a first investor;
- investing at least said stated preservation percentage of said principal cash investment into a first set of stable interest bearing accounts to generate a first return, wherein said stated preservation percentage is between 1% and 99%;
- establishing an reserve account including a portion of said principal cash investment and said first return;
- selecting at least one option from said plurality of options based upon a plurality of criteria;
- purchasing said at least one option using funds from said reserve account;
- disposing of said at least one option to generate a second return;
- and
- placing said second return into said reserve account or a second set of stable interest bearing accounts depending upon the balance of said first set of accounts and said stated preservation percentage.
Dependencies are inferred from the claim text.