O
Open Interest
The total number of option contracts that have been opened and not yet closed.
Opening Purchase
A transaction in which the purchaser's intention is to create or increase a long position in a given series of options.
Opening Sale
A transaction in which the seller's intention is to create or increase a short position in a given series of options.
Opening Transaction
A trade which adds to the net position of an investor. An opening buy transaction adds more long securities to the account. An opening sell transaction add...
Option Pricing Curve
A graphical representation of the projected price of an option at a fixed point in time. It reflects the amount of time value premium in the option for var...
Options Clearing Corporation (OCC)
The issuer of all listed option contracts that are trading on the national option exchanges.
Order Book Official
The exchange employee in charge of keeping a book of public limit orders on exchanges utilizing the "maker-maker" system, as opposed to the "specialist sys...
Out-of-the-money
A call option is out-of-the-money if the strike price is greater than the market price of the underlying security. A put option is out-of-the-money if the...
Over-the-Counter Option (OTC)
An option traded off-exchange, as opposed to a listed stock option. The OTC option has a direct link between buyer and seller, has no secondary market, and...
Overvalued
Describing a security trading at a higher price than it logically should. Normally associated with the results of option price predictions by mathematical...