Characteristics and Risks of
Standardized Options

Options involve risk and are not suitable for all investors.

Online trading has inherent risks due to system response and access times that vary due to market conditions, system performance and other factors such as your Internet provider. An investor should understand these and additional risks before trading.

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Option Contracts

• Characteristics and Risks of Standardized Options

  This publication refers solely to options issued by OCC. Prior to buying or selling an option, a person must receive a copy of this brochure. It includes a discussion on basic option terminology, types of options available for trading, general provisions for exercise and settlement, unique tax considerations, risks, and other supplemental material.

• May 2010 Supplement to Characteristics and Risks of Standardized Options

  This supplement provides additional risk disclosures regarding the characteristics of options on conventional index-linked securities and the risks of these options.

• December 2009 Supplement to Characteristics and Risks of Standardized Options

  This supplement supersedes and replaces the September 2008 Supplement to the Characteristics and Risks of Standardized Options, and provides information relating to options on indexes and the adjustment of stock option contracts.

• September 2008 Supplement to Characteristics and Risks of Standardized Options

  This supplement provides additional information relating to the variability of options and the definition of ordinary cash dividend.

• June 2008 Supplement to Characteristics and Risks of Standardized Options

  This supplement supersedes and replaces the April 2008 supplement to the Characteristics and Risks of Standardized Options, and provides additional information relating to delayed start options, binary stock options, binary index options, and range options.