Characteristics and Risks of Standardized Options

Prior to buying or selling an option, investors must read a copy of the Characteristics and Risks of Standardized Options, also known as the options disclosure document (ODD). It explains the characteristics and risks of exchange traded options.

Effective March 30, 2023, a new version of the ODD is available for distribution (March 2023 ODD).  The March 2023 ODD supersedes and replaces the prior ODD and supplements, and consequently, prior versions of the ODD, including the March 2022 ODD and all prior versions, should no longer be distributed.  

Download the Characteristics and Risks of Standardized Options (PDF)

The March 2023 ODD version contains new language to (i) accommodate cash-settled flexibly structured options on certain fund shares that meet specified criteria as defined in the rules of the options market, (ii) provide additional details on the fungibility of flexibly structured options with standardized options, and (iii) address a scenario where an underlying security price may not be available and the resulting implications for cash-settled flexibly structured options on certain fund shares. Additionally, the March 2023 ODD updates language describing when trading in a.m. settled index options may not occur in relation to an option expiration date and, in unusual circumstances, due to market closures.

Market participants should be aware that, going forward, all future changes to the ODD will be incorporated into an updated version of the document rather than through the issuance of separate supplements.  Firms are reminded that new versions of the ODD may be issued at various times as needed to address new products or industry changes. 

OCC Information Memos regarding the ODD

ODD – Electronic Delivery and Print Copies

Broker-dealers must distribute the ODD to customers pursuant to Rule 9b-1 under the Securities Exchange Act of 1934 as well as in accordance with the rules of the broker-dealer’s designated options examining authority.  Electronic delivery of the ODD is permissible if the requirements for electronic delivery as established by the SEC are met.  Broker-dealers may wish to consider SEC guidance on electronic delivery as provided in the Federal Register, including but not limited to 60 FR 53458, 61 FR 24644, and 65 FR 25843.  Broker-dealers should consult with their Legal and Compliance resources to determine the appropriate means of delivery of the ODD to investors.

Investors may obtain a printed version of the ODD from their broker-dealers, from any exchange on which options are traded, or by placing an order online.   Investors may also view and print the ODD by clicking the image above.

As stated above, firms are reminded that new versions of the ODD may be issued at various times as needed to address new products or industry changes.  It may be necessary for firms to distribute multiple new versions of the ODD within a year.  Firms that still deliver the ODD in paper format and maintain an inventory of ODD paper copies should take this into consideration when ordering the ODD.

Printed copies of the ODD are in an 8.25" x 10.75" format. Click here to place an order for the printed version of the Options Disclosure Document for a quantity of 5 or more copies. You will be redirected to a third-party website to order.  The ODD is $0.45 per copy plus shipping and handling. Additional time will be required for the initial printing of the March 2022 ODD.  Please expect delays in shipping. Orders of less than 5 documents must be placed with [email protected].

Additionally, OCC will make available a print-ready PDF version of the ODD upon request so that firms who wish to print the ODD through their own printing services may do so. Commencing March 30, 2023, Clearing Members may contact their Clearing Member Representative to request the printer ready version of the March 2023 ODD, and other firms may contact InvestorServ[email protected] to request the printer ready version of the ODD.

OCC makes no recommendation as to whether broker-dealers should choose to print the ODD using their own printing services to fulfill their ODD distribution obligation to investors. By using the print-ready PDF version to print paper copies of the ODD for investors, a firm accepts sole and exclusive responsibility for ensuring that paper copies exactly replicate the copy of the ODD that would otherwise be provided by the printing facility used by OCC, including with respect to legibility. Any firm receiving the printer version is prohibited from selling it and any copies made therefrom.

If you have questions regarding an online order, please contact the Options Clearing Corporation at [email protected]

Historical versions of the ODD, which may be viewed by clicking here, are provided for historical purposes only and should not be distributed. 

Having Trouble Viewing the ODD?

We recommend downloading and installing the latest version of Adobe Acrobat Reader, which is available as a free download. If your problems persist you may want to order a printed version or contact your broker.

ODD Quick Guide - Investor Tool

Through the programs and services of The Options Industry Council (OIC)SM, OCC has created an ODD Quick Guide to support your understanding of disclosures for option investors. This resource is designed to help you navigate the ODD, explore the topics covered and understand the options terminology used throughout. This guide is an educational resource and is not a substitute for the ODD.



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