What Is the Options Industry Council (OIC)?
Options Industry Council (OIC) refers to a cooperative that helps educate investors and financial advisers about the benefits and risks of exchange-traded equity options.
- The Options Industry Council (OIC), established in 1992, is a cooperative formed by U.S. options exchanges and the Options Clearing Corporation.
- The OIC educates investors and financial advisers about the benefits and risks of exchange-traded equity options.
- OIC offers online classes, in-person seminars, online webcasts, and podcasts along with educational materials, such as DVDs and brochures.
- There are three specialist areas served by the OIC, namely institutional investors, financial advisors, and investors.
Understanding the Options Industry Council (OIC)
The OIC was established in 1992 by U.S. options exchanges and the Options Clearing Corporation (OCC). Its mission is to increase awareness and educate investors about exchange-traded equity options. The OIC is sponsored by a variety of corporations, including Nasdaq Inc.'s International Securities Exchange (ISE).
An exchange-traded option is a standardized derivative contract. This product is guaranteed, trades on an exchange, and is settled through a clearinghouse. Investors trade these contracts by buying or selling a specified amount of a financial asset at a pre-determined price, which is known as the strike price, on or before a pre-determined date. An option to buy is a call and an option to sell is a put.
Understanding and trading these assets may be complicated. In order to provide investors with educational tools and demystify options, a group of U.S. exchanges teamed up with the OCC to establish the Options Industry Council.
The OIC serves as an educational resource to promote exchange-traded equity options. It offers online classes, in-person seminars, online webcasts, and podcasts to investors and other traders. It also distributes educational materials, such as DVDs and brochures. In addition, the organization maintains a website and help desk to promote and assist with options education. Included in the educational material presented on its website are options basics, advanced concepts, strategies, trading tools, calculators, and market quotes.
The OIC is sponsored by corporations including:
- International Securities Exchange (ISE)
- BATS Options
- Boston Options Exchange
- C2 Options Exchange
- Chicago Board Options Exchange
- Nasdaq PHLX
- Nasdaq Options Market
- NYSE Amex
- NYSE Arca
The OIC says its educational tools are free and unbiased.
All the information provided by the OIC is fully vetted. It goes through the appropriate compliance channels to ensure its accuracy before being presented to investors and financial professionals. The experienced instructors seek to address the challenges investors face when they trade options.
The OIC's information serves three specialist areas:
- Institutional Investor Center: This area requires registration. These investors can get useful information about derivatives as well as market issues and trends that financial professionals need.
- Financial Advisor Center: Financial professionals can use materials provided through this section to research the benefits options have for their client base. Registration is also required for this area.
- Investor Services: This section provides all of the basic information investors require about all of the products that trade on OCC exchanges.