Business Plan: Investment Tracking & Options Selling App

1. Overview

The app will provide an automated platform to track investments in well-known stocks with strong fundamentals and assist users in implementing a conservative options-selling strategy. The primary goal is to generate a consistent 1% monthly return on the invested amount through strategic Call (CE) and Put (PE) option selling, while minimizing risk through calculated adjustments.

2. Objectives

1. Automate Option Calculations: Suggest optimal CE and PE strikes to ensure a 1% monthly return.
2. Track Investments: Monitor lot-based stock investments and adjust strategies as needed.
3. Risk Mitigation: Implement dual-option selling (CE and PE) if required to meet the 1% target.
4. Data-Driven Decisions: Integrate fundamental and technical analysis for smarter trades.
5. User Insights: Provide clear reporting and alerts on market movements and strategies.

3. Key Features

a) Investment Tracking

• Track investments by stock, lot size, and average price.
• Monitor price fluctuations and dynamically adjust strategy.

b) Automated Option Suggestions

• Calculate and suggest CE to sell for a 1% premium based on the total investment.
• If CE cannot generate 1%, suggest a PE to sell to complete the difference.

c) Dual-Leg Strategy (CE + PE)

• In case of a significant market decline, sell a PE to ensure a combined 1% premium.
• Adjust the average price when purchasing additional lots.

d) Data Integration

• Use Opstra or similar APIs to fetch live option chain data.
• Analyze technical and fundamental indicators to guide PE/CE decisions.

e) Dynamic Adjustments

• Automatically recalculate new average price on additional lot purchases.
• Suggest CE and PE strikes based on the new average price and investment size.

f) Reporting & Notifications

• Provide users with monthly summaries of gains, losses, and open positions.
• Send alerts if the market moves sharply or if adjustments are required.

4. User Workflow

1. Stock Entry: User enters stock, lot size, and purchase price.
2. Option Calculation: App suggests CE for 1% premium.
3. Market Monitoring: If market drops, adjust by:
   • Selling CE at or above buy price.
   • If 1% premium is not achievable, suggest an additional PE.
4. Reinvestment: If stock drops to a critical level, suggest a new purchase and update the average price.
5. Continuous Optimization: Repeat the process to maintain 1% monthly returns.

5. Example Calculation Workflow

1. Initial Purchase:
   • Buy 75 SIEMENS shares @ 5000.
   • Total Investment: 5000 * 75 = 375,000.
   • Sell CE @ 5400 for a premium of 3750 (1%).
2. Market Drop (Month 2):
   • SIEMENS drops to 4600.
   • Sell CE @ 5000 for a premium of 3750.
3. Further Drop (Month 3):
   • SIEMENS falls to 4300.
   • Sell CE @ 5000, but only get 2500 in premium.
   • App suggests selling a PE to reach the 3750 target (e.g., PE @ 3900).
4. Major Drop (Month 4):
   • SIEMENS falls to 3800.
   • Buy a new lot @ 3900.
   • New Investment: 5000 * 75 + 3900 * 75 = 667,500.
   • New Average: 667,500 / 150 = 4450.
   • Sell CE @ 4450 and additional PE to maintain 1% premium.

6. Technical Architecture

• Frontend: React (for real-time data visualization and user inputs)
• Backend: Node.js (for calculations and API integrations)
• Database: MongoDB (to track positions, trades, and performance)
• Third-Party APIs: Opstra (for option chains and live market data)

7. Future Enhancements

• Multi-stock tracking for diverse portfolios.
• Backtesting feature for strategy simulation.
• Machine learning for advanced predictive analytics.
• Integration with brokerage APIs for automated execution.

8. Monetization Plan

• Subscription Model: Monthly/Yearly access to advanced calculations and alerts.
• Premium Tiers: Offer advanced features like automated hedging strategies.
• Affiliate Programs: Partner with brokerages for commission-based revenue.

9. Timeline

1. Phase 1 (3 months): Core features – investment tracking, CE/PE calculations.
2. Phase 2 (6 months): Dual-leg strategy, API integration, advanced reporting.
3. Phase 3 (12 months): Automated trading, predictive analytics, and brokerage integration.

10. Conclusion

This app will provide a robust and automated way to track investments, optimize option-selling strategies, and ensure consistent returns with minimal risk. The phased development approach allows for iterative enhancements and market responsiveness.