New invention for the derivatives market - How to profit of it?

Discussion in 'Options' started by thecoder, Aug 17, 2020.

  1. #11     Aug 17, 2020
  2. thecoder

    thecoder

    Crowdfunding? No thanks.
    And be assured it's neither a scam nor Ponzi scheme.
    It's just a new option type, mathematically solid, and well tested.
     
    #12     Aug 17, 2020
  3. thecoder

    thecoder

    Tomorrow, after registering the trademark, I can tell more.
     
    #13     Aug 17, 2020
  4. traider

    traider

    Congrats, 1st billionaire on ET!
     
    #14     Aug 17, 2020
  5. :D

    Are you gonna use your alternative delta for hedging it?
     
    #15     Aug 17, 2020
    trader99 and VolSkewTrader like this.
  6. guru

    guru


    1. I think publishing a paper would be a good choice, maybe even partner with someone who already published one. If you really invented something useful then you should get job and business offers, even if it’s a job first and a business later, maybe also some speaking engagements.

    2. Listing an alternative product to options may not attract customers. OneChicago has been promoting single stock futures for many years, but you probably never heard of them. While most traders, quants, developers and funds invested many years and dollars into learning, analyzing and backtesting options, including developing various libraries and toolkits for it.
    Your proposition may require $billions in investment from thousands of organizations across the world, and abandoning profits that they are making from trading options.
    Actually anyone can say “trading without HFTs and without front-running is better”, but so what? Trading firms are fighting to protect their profits from market flaws and inefficiencies...
     
    #16     Aug 17, 2020
  7. Metamega

    Metamega

    Was thinking he came up with “options for options”. Always figured that was the next step.

    Like options on futures. You got a derivative on a derivative.
     
    #17     Aug 17, 2020
  8. newwurldmn

    newwurldmn

    You need to team up with a firm that has clout, access and marketing.

    you will give up a substantial amount of equity but imagine if you got 1 cent for every Vix contract that traded a day....
     
    #18     Aug 17, 2020
  9. xandman

    xandman

  10. thecoder

    thecoder

    Yeah, need to find such a firm that would be interested in obtaining the rights of this product idea.

    Suppose asking for say just a 1 cent per contract as license fee:
    according to this site https://www.statista.com/statistics/377025/global-futures-and-options-volume/
    last year about 15.23 billion option contracts were traded globally.
    If we take half of it and multiply by 1 cent per contract then this makes about $76 million every year
    that this product idea would bring the firm, at least, plus reputation, market leadership in this product, etc.
     
    #20     Aug 17, 2020