A method to create a series of call options on a property for the seller to sell one, preferably the highest priced call option, and to create a series of put options on a property for the seller to buy one, preferably the lowest priced put option, comprising of the following steps:
- 1.1. Auction website owner or operator setting up an auction website on a computer server with hardware such as storage drivers, memories, processors, peripherals;
- and software such as programs, computing algorithms, mathematic formulas, web pages, proper interfaces with users and website operators.
- 1.2. A seller listing a property on an auction website using one or more of the following:
- an auction listing date, an auction ending date, a property's future selling date or escrow closing date, and a property current home value, and additional description of a property such as address, home size, bedroom, bathroom, year built, and other aspects of a property.
- 1.3. Auction website creating a series of call options on the seller's property each call option comprising of a future selling price and a call option premium price.
- 1.4. Auction website creating a series of put options on the seller's property each put option comprising of a future selling price and a put option premium price.
- 1.5. Auction website creating a series of spread options on the seller's property each spread option comprising of composite prices of a future selling price and a call option premium price, and a future selling price and a put option premium price.
- 1.6. Auction website displaying the created call options, and/or put options, and/or spread options for auction for a period of time to sell one or more of the following:
- 1) the highest strike price along with the highest call option premium price in a call option auction;
- and/or 2) the highest strike price along with the lowest put option premium price in a put option auction;
- and/or 3) the combination of 1) and 2) in a spread option auction.
- 1.7. A buyer searching and identifying a property of interest, and then placing a bid in a call option auction, and/or placing a bid in a put option auction, and/or placing a bid in a spread option auction.
- 1.8. A winning buyer having won the call option comprising of the highest strike price and the highest call option price or the combination of the two prices.
- 1.9. A winning buyer having won the put option comprising of the highest strike price and the lowest put option price or the combination of the two prices.
- 1.10. A winning buyer having won the spread option comprising of the highest strike price and the highest call option premium price or the combination of the two;
- and the highest strike price and the lowest put option premium price or the combination of the two.
- 1.11. The winning buyer paying the seller the winning call option premium at the end of a call option auction
- 1.12. The seller paying the winning buyer the winning put option premium at the end of a put option auction
- 1.13. The winning buyer paying seller a delta option premium in the amount of a call option premium less a put option premium at the end of a spread option auction;
- or the seller paying the winning buyer a delta option premium in the amount of a put option premium less a call option premium in a spread option auction
- 1.14. The winning buyer and the seller entering into a call option agreement that the buyer has the right to purchase seller's property on the future date for the winning strike price;
- 1.15. The winning buyer and the seller entering into a put option agreement that the seller has the right to sell the underline property to a buyer on the future date for the winning strike price.
- 1.16. The winning buyer and the seller entering into a spread option agreement that the buyer has the right to buy the underline property from the seller according to the call option right in the spread option agreement;
- and the seller has the right to sell the underline property to a buyer according to the put option right in the spread option agreement.
- 1.17. The winning property buyer exercises the right to purchase and to open escrow to complete the purchase of the property from a property seller according to the call option agreement or the spread option agreement;
- the seller exercises the right to sell and to open escrow to complete the sale of the property to a winning property buyer according to the put option agreement and spread option agreement.