Patent ID: 8386374

Claim:
An exchange for creating and trading a package of option contracts, the exchange comprising: an exchange backend system, the exchange backend system comprising a processor configured to: identify an underlying asset for which standard options contracts are traded on the exchange at the electronic trading platform; select one of a call option contract or a put option contract for the underlying asset as a first leg of an option collar; select an unselected one of the call option contract or the put option contract for the underlying asset as a second leg of the option collar, wherein the second leg is selected based on a strike price of the first leg; and list the first and second legs of the option collar as a single packaged instrument on the exchange; and an electronic trading platform in communication with the exchange backend system, the electronic trading platform configured to: accept orders from investors to take positions in the packaged instrument; and execute orders by matching orders to take opposite positions in the packaged instrument.