DETAILED ACTION
Notice of Pre-AIA or AIA Status
1. The present application, filed on or after March 16, 2013, is being examined under the first inventor to file provisions of the AIA .
Election/Restrictions
2. Applicant’s 03/25/2026 election without traverse of Group I, claims 1-9 and further amends independent claim 1 and cancels dependent claims 2-9 in response to the restriction requirement of 11/25/2025, is acknowledged and the election is made Final. Pending claim 1 is rejected for the reasons set forth below.
Information Disclosure Statement
3. The Information Disclosure Statement (IDS) filed on 07/01/2024 has been considered. Initialed copies of the Form 1449 are enclosed herewith.
Claim Rejections - 35 USC § 101
4. 35 U.S.C. 101 reads as follows:
Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.
5. Claim 1 is rejected under 35 U.S.C. 101 because the claimed invention is directed to a judicial exception (i.e., an abstract idea) without significantly more.
6. Analysis:
Step 1: Statutory Category?: (is the claim(s) directed to a process, machine, manufacture or composition of matter?) - YES: In the instant case, claim 1 is directed to a method (i.e., process).
Regarding independent claim 1:
Step 2A - Prong 1: Judicial Exception Recited?: (is the claim(s) recited a judicial exception (an abstract idea enumerated in the 2019 PEG, a law of nature, or a natural phenomenon) – YES: Independent claim 1 recites the at least following limitations of “… determining, for a selected continuous range of a plurality of possible future prices for a stock, a first set of prices within the range that will result in a profit for an option strategy respective of the stock; calculating a first probability that a price of the stock at a specified future date will be equal to a price from the first set of prices, wherein said calculating said first probability comprises integrating a first probability distribution function respective of a range of all possible future prices of the stock across the first set of prices, wherein said first probability distribution function is a first log-normal distribution, and wherein a first standard deviation of said first log- normal distribution is determined according to an implied volatility of the stock; determining, for a selected continuous range of a plurality of possible future prices for a stock, a second set of prices within the range that will result in a loss for the option strategy; calculating a second probability that the price of the stock at the specified future date will be equal to a price from the second set of prices, wherein said calculating said second probability comprises integrating a probability distribution function respective of a range of all possible future prices of the stock across the second set of prices, wherein said second probability distribution function is a second log-normal distribution, wherein a second standard deviation of the second log-normal distribution is determined according to an implied volatility of the stock and wherein a border between said first set of prices and second set of said prices is determined according to a closed form calculation; calculating a probability that a portfolio of option strategies including the option strategy will be profitable; and providing, for a user, … having an indication of the first set of prices and the second set of prices overlaid on the selected continuous range, providing, …, a ratio of the first probability to the second probability as a probability that the option strategy will be profitable, and providing, …, the probability that the portfolio will be profitable.” These recited limitations of the claim, as drafted, under its broadest reasonable interpretation, fall within the “Certain Methods of Organizing Human Activity” grouping of abstract ideas as they cover performance of the limitations in commercial interactions (including sales activities for providing an option strategy with probability of a profit relating to trading a stock portfolio). Accordingly, the claim recites an abstract idea.
Step 2A - Prong 2: Integrated into a Practical Application?: (is the claim(s) recited additional elements that integrate the exception into a practical application of the exception) - NO: This judicial exception is not integrated into a practical application. In particular, independent claim 1 further to the abstract idea includes additional elements of “a visual display”. However, the additional elements recite generic computer components such as a computer, computing devices, a server, and/or software programing that are recited a high-level of generality that merely perform, conduct, carry out, implement, and/or narrow the abstract idea itself. Accordingly, the additional elements evaluated individually and in combination do not integrate the abstract idea into a practical application because they comprise or include limitations that are not indicative of integration into a practical application such as adding the words "apply it" (or an equivalent) with the judicial exception, or mere instructions to implement an abstract idea on a computer, or merely uses a computer as a tool to perform an abstract idea -- See MPEP 2106.05(f). The claim is directed to an abstract idea.
2B: Claim provides an Inventive Concept?: (is the claim(s) recited additional elements that amount to an inventive concept (aka “significantly more”) than the recited judicial exception) - NO: The claim does not include additional elements that are sufficient to amount to significantly more than the judicial exception. As discussed above with respect to integration of the abstract idea into a practical application, the additional elements of “a visual display” evaluated individually and in combination do not amount to more than a recitation of the words "apply it" (or an equivalent) or are not more than mere instructions to implement an abstract idea or other exception on a computer, or are not more than merely using a computer as a tool to perform an abstract idea. Use of a computer or other machinery in its ordinary capacity for economic or other tasks (e.g., to receive, store, or transmit data) or simply adding a general-purpose computer or computer components after the fact to an abstract idea (e.g., a fundamental economic practice or mathematical equation) does not integrate a judicial exception into a practical application or provide significantly more - See MPEP 2106.05(f)(2). None of the additional elements taken individually or when taken as an ordered combination amount to significantly more than the abstract idea. Accordingly, the claim is patent-ineligible.
Claim Rejections - 35 USC § 102
7. In the event the determination of the status of the application as subject to AIA 35 U.S.C. 102 and 103 (or as subject to pre-AIA 35 U.S.C. 102 and 103) is incorrect, any correction of the statutory basis for the rejection will not be considered a new ground of rejection if the prior art relied upon, and the rationale supporting the rejection, would be the same under either status.
8. The following is a quotation of the appropriate paragraphs of 35 U.S.C. 102 that form the basis for the rejections under this section made in this Office action:
A person shall be entitled to a patent unless –
(a)(1) the claimed invention was patented, described in a printed publication, or in public use, on sale or otherwise available to the public before the effective filing date of the claimed invention.
9. Claim 1 is rejected under 35 U.S.C. 102(a)(1) as being anticipated by Carpenter et al. (U.S. Pub. No. 2010/0005035), hereinafter, “Carpenter”.
Claim 1 –
Carpenter disclose:
a method of determining, calculating and presenting investment data, comprising (See at least Carpenter, [Abstract], “systems and methods for an investment trading platform are described. An investment platform forms electronic links among member investors and investment portfolios and brokerage accounts of the investors, wherein a portfolio includes at least one investment position”, see also Figure 1):
determining, for a selected continuous range of a plurality of possible future prices for a stock, a first set of prices within the range that will result in a profit for an option strategy respective of the stock (See at least Carpenter, [0093], “The opportunity is to develop either a long or short investment strategy that can be used as the basis for an investment recommendation. Several criteria are considered, including historical performance, real-time trading activity and holding decisions, sector inflows and outflows, risk, and diversification (amongst others) to form the basis of the system”, see also Figure 1);
calculating a first probability that a price of the stock at a specified future date will be equal to a price from the first set of prices, wherein said calculating said first probability comprises integrating a first probability distribution function respective of a range of all possible future prices of the stock across the first set of prices, wherein said first probability distribution function is a first log-normal distribution, and wherein a first standard deviation of said first log- normal distribution is determined according to an implied volatility of the stock (See at least Carpenter, [0112], [0114], “The properties of the binomial distribution are then used to calculate a measure of skill. This is very similar to a coin toss experiment, where the probability of getting a head (win) in a coin toss is 0.5. Thus, in a series of coin toss experiments the number of heads and tails should converge. This is similar to the situation where there is no investing skill. If, however the number of heads is significantly different from the number if tails, it is determined that the coin is biased … In a normal distribution, 66% of all values lie within 1 sigma of the mean about 95% within 2 sigma and about 99% values lie within 3 sigma of the mean”, see also Figure 9);
determining, for a selected continuous range of a plurality of possible future prices for a stock, a second set of prices within the range that will result in a loss for the option strategy (See at least Carpenter, [0126], “Generating the weighted average loss percentage of an embodiment comprises calculating the weighted average loss percentage 1306 by dividing the third quantity by a total number of investment positions that underperformed the benchmark”, see also Figure 13);
calculating a second probability that the price of the stock at the specified future date will be equal to a price from the second set of prices, wherein said calculating said second probability comprises integrating a probability distribution function respective of a range of all possible future prices of the stock across the second set of prices, wherein said second probability distribution function is a second log-normal distribution, wherein a second standard deviation of the second log-normal distribution is determined according to an implied volatility of the stock and wherein a border between said first set of prices and second set of said prices is determined according to a closed form calculation (See at least Carpenter, [0112], [0114], “The properties of the binomial distribution are then used to calculate a measure of skill. This is very similar to a coin toss experiment, where the probability of getting a head (win) in a coin toss is 0.5. Thus, in a series of coin toss experiments the number of heads and tails should converge. This is similar to the situation where there is no investing skill. If, however the number of heads is significantly different from the number if tails, it is determined that the coin is biased … In a normal distribution, 66% of all values lie within 1 sigma of the mean about.95% within 2 sigma and about 99% values lie within 3 sigma of the mean”, see also Figure 9);
calculating a probability that a portfolio of option strategies including the option strategy will be profitable (See at least Carpenter, [0125], “Generating the weighted average win percentage of an embodiment comprises calculating a first quantity 1202 by multiplying a percentage of the investment position in the portfolio and a percentage gain for the investment position. The first quantity is calculated for each period of time of a plurality of periods of time for which the investment position outperformed a benchmark. Generating the weighted average win percentage of an embodiment comprises calculating a second quantity 1204 by summing each first quantity for all periods of time of the plurality of periods of time for which the investment position outperformed the benchmark”, see also Figure 12); and
providing, for a user, a visual display having an indication of the first set of prices and the second set of prices overlaid on the selected continuous range, providing, within the visual display, a ratio of the first probability to the second probability as a probability that the option strategy will be profitable, and providing, in the visual display, the probability that the portfolio will be profitable (See at least Carpenter, [0141], [0143], “Other positions can be provided or displayed to a member, which may provide more significant upside with reduced risk than the ones currently in the member's portfolio. The IDSS can also "see" across various industry sectors and investing strategies to develop hypotheses around areas of potential out-performance and under-performance … Because the rankings 402 generated by the IDSS assist members in better understanding the underlying positions that members of different ranks are holding, watching, and transacting, the IDSS uses the rankings 402 to generate information of and display via the strength of signal plot the "net buying" activity of particular positions through application of a calculation that aggregates all of the different rankings into one measure. The IDSS calculates this measure over time to determine an understanding of trends. This way, a member can compare various positions quickly to gauge whether he/she should sell or buy”, see also Figure 14).
Relevant Prior Art
10. The prior art made of record and not relied upon are considered pertinent to applicant's disclosure:
Viner (U.S. Pub. No. 2006/0020526) teaches investment portfolio analysis system.
Waelbroeck et al. (U.S. Patent No. 8,296,221) teach methods and systems related to securities trading.
Conclusion
11. Any inquiry concerning this communication or earlier communications from the examiner should be directed to Liz Nguyen whose telephone number is (571) 272-5414. The examiner can normally be reached on Monday to Friday 8:00 A.M to 5:00 P.M.
If attempts to reach the examiner by telephone are unsuccessful, the examiner’s supervisor, Matthew Gart, can be reached on (571) 272-3955. The fax phone number for the organization where this application or proceeding is assigned is 571-273-8300.
Information regarding the status of an application may be obtained from the Patent Center system (visit: https://patentcenter.uspto.gov). If you would like assistance from a USPTO Customer Service Representative or access to the automated information system, call (800) 786-9199 (USA or CANADA) or (571) 272-1000.
/LIZ P NGUYEN/
Examiner, Art Unit 3696
/MATTHEW S GART/Supervisory Patent Examiner, Art Unit 3696
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