memory-continuity/projects/geopolitical-turbulance-trapper/docs/DERIVATIVES_VERIFICATION_WORKFLOW.md

Derivatives Verification Workflow

Before any derivative is elevated from candidate to recommendation:

1. Verify underlying-symbol mapping.
2. Verify instrument type (CBBC, warrant, option, LEAP).
3. Verify call/barrier/strike/expiry/ratio from a trusted source.
4. Record issuer / venue.
5. Record bid, ask, spread, volume, turnover, and outstanding when available.
6. Mark verification status:
   • unverified
   • partial
   • verified
7. Do not present unverified products as high-confidence trade suggestions.

Extra checks for HK CBBC / warrants

• KO/call buffer vs current underlying price
• liquidity deterioration risk near barrier
• outstanding concentration risk
• likely spread behavior under fast markets

Extra checks for US options / LEAPS

• IV level and term structure
• theta decay
• option volume / OI
• earnings event proximity