Blackboxstocks Stock

Blackboxstocks Inc. develops and markets financial technology and social media hybrid platform.

The company offers real-time proprietary analytics and news for stock and options traders of all levels combined with a social media element and educational materials. The company's web-based software (the Blackbox System) employs predictive technology enhanced by artificial intelligence to find volatility and unusual market activity that may result in the rapid change in the price of a stock or option. The company continuously scans the New York Stock Exchange (NYSE), Nasdaq Capital Market (NASDAQ), Chicago Board Options Exchange (the CBOE) and other options markets, analyzing over 10,000 stocks and over 1,500,000 options contracts multiple times per second. The company provides its subscribing members with a fully interactive social media platform that is integrated into its dashboard, enabling its members to exchange information and ideas quickly and efficiently through a common network. The Blackbox System's combination of proprietary analytics and broadcast enabled social media connecting traders of all types worldwide on an intuitive, user-friendly system is a unique and disruptive financial technology platform. All of the company's software is web-based and does not require downloads or frequent updates.

Revenue Model

The company generates revenue from a software as a service (or SaaS) model whereby members pay either an annual or monthly fee for a subscription to its platform. All members have full access to all of the features on the company's platform. The company occasionally offers gift cards and promotional discounts on its annual subscriptions.

Development of the Blackbox System

The Blackbox System was made available for use to subscribing customers worldwide in September 2016. The company uses a web-based platform focused on providing proprietary analytics and broadcast enabled social media for its community of members. The company's product offering consists of three key elements: trading analytics, social media interaction and educational programs and resources.

Trading Analytics

The company's preconfigured dashboard is designed to be simple and easy to navigate and includes real-time alerts, stock and options scanners, financial news, institutional grade charting, and its proprietary analytics that can be utilized by traders of all levels. The company's Blackbox System populates the stock and option data in real time and provides a wide range analytics and tools for traders. The company offers many of the standard market tool features used by traders but differentiate its product with an array of unique proprietary features and derived data. These proprietary features are designed to filter out market noise and locate the relevant market movers in the stock or option category in real-time.

In December 2017, the company launched its first Options Flow Scanner as a new feature on its platform. The company's Options Flow Scanner is designed to monitor and alert its members to unusual activity on the options exchanges. The company has created a proprietary options alert system and a proprietary options heatmap to allow its members to follow large options purchases in real-time. The heatmap provides the company's members with a color-coded chart indicating bullish or bearish activity of a security's option contracts sorted by strike price and expiration date that quickly identifies which direction money is flowing. This has proven to be a very popular feature for the company's members. The company also added a Dark Pool Scanner in 2020. The Dark Pool Scanner monitors, tracks, charts and displays large blocks of stock that are often purchased in dark pools and as a result these orders are not displayed on regular exchanges.

Brokerage Integrations

The company has trading integrations with the online brokerages E*Trade and TradeStation. These integrations allow the company's members to execute trades through E*Trade orTradeStation directly from the Blackbox platform. The company's members that use this integration feature have access to certain custom tools. One of these tools is a quick-click feature that loads the company's system's stock and options alerts with two simple clicks, greatly reducing the time it takes for order entry. This feature is especially helpful for the order entry of option contracts, as they are detailed, lengthy, and cumbersome to enter. The company intends to expand the number of brokerages with whom it has trading integrations in the future.

Education

The company offers all members full access to its curriculum of classes, orientations, and live market sessions. These education programs are all free to the company's members with either monthly or annual subscriptions. The company's curriculum includes classes for beginners, intermediate level, as well as advanced traders. The company has many regularly calendared live webinars, Q&A sessions, as well as recorded classes. In addition to its regularly calendared classes, the company often features ad hoc classes taught by seasoned members of its community. The educators of these classes often specialize in specific market sectors or trading strategies. Classes and webinar events offered to the company's members include but are not limited to: Trading with Charlie and Maria; Blackbox Orientation; Tuesday and Thursday Q&A; Blackbox Bootcamp Part I ~Basics of Stocks and Options; Blackbox Bootcamp Part II ~The BBS Trading System; Understanding Options Flow; Technical Analysis 101; and Dark Pool Basics.

In addition to its internal curriculum, the company has partnered with the Options Industry Council (OIC), a nonprofit organization funded by the OCC with the mission of providing the investing public a better understanding of the options markets. Classes taught by the OIC to the company's members include but are not limited to The Greeks Part I; The Greeks Part II; Implied Volatility; Short Term Options Explained; and Options Pricing Explained.

One of the most attractive aspects of the company's education program is that the classes are taught by members of its community. The student members who take these are often familiar with the instructor from following them in live trading channels on the company's platform

The Blackbox Advantage

A principal component to the company's platform is the flexibility to provide members intuitive yet powerful technical analytics that scale with user knowledge. The company's preconfigured dashboard defaults to a general setting that is designed to be easy for new members to navigate. Within this same dashboard the company provides a multitude of toggles and filters for more sophisticated traders to allow them to implement custom features for their more advanced trading strategies. Most importantly, the company's live community consisting of thousands of traders creates a real-time community curated support system whereby seasoned traders often mentor newer members. The company is working with its data provider and the individual exchanges to develop a streamlined digital onboarding process.

Portfolio Management Product

The company is developing a new product in the form of a mobile app for iOS and Android that will provide real-time portfolio alerts for a broad demographic of investors. Many of these alerts are a product of derived data generated on the Blackbox platform. This app will be designed to integrate with online brokerage platforms and allow the user to import their stock positions and stocks on their watchlist into its app.

Cryptocurrency Analytics Platform

The company is working on a quotation system and trading integration partnership that will allow its members to trade crypto currency through the Blackbox Cryptos platform. This new platform will include the same interactive social media component the company provides to members of its Blackbox platform.

Additional Exchanges in Major Markets

The company plans to expand into other markets and create products similar to its Blackbox System that provide proprietary analytics for people trading on other major exchanges in the world. Exchanges the company is exploring include the Indian Stock markets (BSE and NSE), Canadian Securities Exchange (CSE), Toronto Stock Exchange (TSX), Brasilian BOVESPA, Frankfurt Stock Exchange (FWB) and the London Stock Exchange (LSE). The company is also exploring expansion into China with focus on the Hong Kong Stock Exchange (HKSE) and the mainland Shenzhen Stock Exchange (SZSE).

Marketing of the Blackbox System

The company launched its Blackbox System and platform for use in the United States and made it available to subscribers in September 2016. Use of the platform is sold on a monthly or annual subscription basis to individual consumers through the company's website at http://www.blackboxstocks.com. The company primarily uses a combination of digital marketing campaigns and customer referral compensation plans in its advertising program. The company's digital advertising efforts are consisted of display and video ads, along with banner and text ads across multiple search and social platforms. The company also utilizes targeted email marketing and a strategic global marketing campaign for brand awareness.

The company maintains servers connected with its stock and options data provider and utilize an Amazon Web Services (AWS) network as a backup.

Government Regulation and Approvals

The company is subject to regulatory oversight by the Securities and Exchange Commission (SEC), FINRA or other financial regulatory agencies.