What Is an Options Disclosure Document (ODD)?

The options disclosure document (ODD) is a publication issued by the Options Clearing Corporation (OCC) that serves as an important guide for options traders. The comprehensive document—formally titled Characteristics and Risks of Standardized Options—is particularly essential for novice options traders. Options are financial derivatives based on the value of underlying securities such as stocks. Options give investors the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price within a specific time frame.