What is the Option Disclosure Document (ODD)?

The Option Disclosure Document (ODD) is a publication issued by the Options Clearing Corporation (OCC), the world’s largest equity derivatives clearing organization. The OCC acts as a central clearinghouse for options trades in the U.S., helping ensure the integrity and stability of the options market.

The ODD explains how options work and the risks involved in trading them. It is an essential resource for anyone new to options trading. Options can be complex and involve significant risk, including the potential for substantial losses.

The ODD—formerly titled Characteristics & Risks of Standardized Options—is designed to help investors understand these risks before trading. You can access the ODD here.