Patent ID: 8121934

Claim:
A method trading collars on an options exchange, the method comprising: in a processor of an exchange system: identifying an underlying asset for which standard options contracts are traded on the exchange at an electronic trading system; identifying one of an out-of-the-money standard call option or an out-of-the-money standard put option at the electronic trading system, the one of the out-of-the-money standard call option or the out-of-the-money standard put option having a first option price, wherein the out-of-the money standard call option and the out-of-the-money standard put option are based on the identified underlying asset; identifying the other of the out-of-the-money standard call option or the out-of-the-money standard put option at the electronic trading system, the other of the out-of-the-money standard call option or the out-of-the-money standard put option having a second option price which substantially offsets said first option price; listing, via a pricing data accumulation and dissemination module of the electronic trading system, the out-of-the-money standard call option and the out-of-the-money standard put option together as a package on the exchange; and wherein both the out-of-the-money standard call option and the out-of-the-money standard put option are placed in a single order for the package.