Option Disclosure Document


DEFINITION of 'Option Disclosure Document'

A publication issued by the Options Clearing Corporation (OCC) that first-time option traders are required to read before being allowed to make any option trades. The document prepares traders for the options market.

BREAKING DOWN 'Option Disclosure Document'

The document outlines the various types of options and requisite options terminology, provisions for exercising and settling options, tax implications and the unique risks inherent in derivative instruments.

  1. Derivative

    A security with a price that is dependent upon or derived from ...
  2. Option

    A financial derivative that represents a contract sold by one ...
  3. Options Clearing Corporation - ...

    An organization that acts as both the issuer and guarantor for ...
  4. Leverage

    1. The use of various financial instruments or borrowed capital, ...
  5. Option Agreement

    1. A signed agreement between an investor who is seeking to open ...
  6. Risk Lover

    An investor who is willing to take on additional risk for an ...
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