Risk management system for recommending options hedging strategies

摘要

A risk management system for use in generating, for any long or short stock position or an entire portfolio, one or more options hedging strategies to protect unrealized profits and to insure the position against directional market risk. The risk management system recommends a preferred options hedging strategy out of many possible strategies based on minimizing losses while maintaining profits, but users of the system can review other possible strategies and make their own selection using predetermined reward, cost, and risk goals. In addition, user's can modify the predetermined goals in a real-time mode and assess alternate options hedging strategies. The risk management system also monitors existing investor profiles and alerts the user when a hedging action is recommended based on pre-established parameters customized for a particular stock position or an entire portfolio. The system accomplishes these features, and others, through an easily learned, fast and efficient user interface.