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 13, 2022, a new version of the ODD is available for distribution (March 2022 ODD). The March 2022 ODD supersedes and replaces the prior ODD and supplements, and consequently, prior versions of the ODD, including the October 2021 ODD and all prior versions, should no longer be distributed.
Market Participants are advised that OCC has submitted a new version of the ODD to the SEC. The new version is not yet effective but is anticipated to become eligible for distribution in late March 2023. OCC will update this website with the new version once it is effective, at which time the new version of the ODD will supersede and replace the current March 2022 ODD version. Please see Information Memo #52025 for more information.
Download the Characteristics and Risks of Standardized Options (PDF)
The March 2022 ODD contains supplemental material to accommodate trading of certain index options and index flex options with a multiplier of one. Additionally, the new version contains administrative changes to correct certain references to chapter subtitles contained in the original ODD text and to update references to sections in the document.
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
- OCC Information Memo #52025
- OCC Information Memo #50171
- OCC Information Memo #50108
- OCC Information Memo #50045
- OCC Information Memo #49473
- OCC Information Memo #49462
- OCC Information Memo #49428
- OCC Information Memo #49332
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].
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.