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The Options Clearing Corporation (OCC) was founded in 1973, initially as a clearing house for five listed markets for equity options. Prior to its establishment, due to a great deal of encouragement from the SEC, the Chicago Board Options Exchange had its clearing entity, the CBOE Clearing Corporation.
Options Clearing Corporation's (OCC) Options Symbology Initiative (OSI) mandated an industry-wide change to a new option symbol structure, resulting in option symbols 21 characters in length. March 2010 - May 2010 was the symbol consolidation period in which all outgoing option roots will be replaced with the underlying stock symbol.
Prior to 2010, [1] standard equity option naming convention in North America, as used by the Options Clearing Corporation, was as follows: For example, an Apple Inc AAPL.O call option that would have expired in December 2007 at a $122.50 strike price would be displayed as APVLZ in old convention (AAPL071222C00122500 in new convention).
Exchange-traded options (also called "listed options") are a class of exchange-traded derivatives. Exchange-traded options have standardized contracts and are settled through a clearing house with fulfillment guaranteed by the Options Clearing Corporation (OCC). Since the contracts are standardized, accurate pricing models are often available.
In most cases, options should not be exercised before expiration because doing so gives away inherent value. Selling them would almost invariably yield more. For an American-style call option, early exercise is a possibility whenever the benefits of being long the underlier outweigh the cost of surrendering the option early.
It is a member of the Options Clearing Corporation (OCC) and the Options Industry Council (OIC). Founded in 2000, the ISE was conceived in 1997 when then-chairman of E-Trade , William A. Porter and his colleague, Marty Averbuch approached David Krell and Gary Katz about their concept and the four founded what is today the International ...
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