What Is an Option Series? An option series refers to a grouping of options on an underlying security with the same specified strike price and the same expiration month. However, call and put options are parts of separate series. For example, a call option series would include the available calls on a specific security at
What Are Options On Futures? An option on a futures contract gives the holder the right, but not the obligation, to buy or sell a specific futures contract at a strike price on or before the option’s expiration date. These work similarly to stock options, but differ in that the underlying security is a futures
What is an Opt Out Right An opt out right generally describes a party’s ability to exclude themselves from specific elements of or changes to a legal agreement. In finance, this right applies most often to sharing of private information among financial institutions. BREAKING DOWN Opt Out Right An opt out right gives a party
Who Is the Oracle of Omaha? The Oracle of Omaha is a nickname for Warren Buffett, who is arguably one of the greatest investors of all time. Buffett is the chair and CEO of Berkshire Hathaway, a company that he became the controlling shareholder of in the mid-1960s. He is called the Oracle of Omaha because
What is an Oral Contract? An oral contract is a type of business contract that is outlined and agreed to via spoken communication, but not written down. Although it can be difficult to prove the terms of an oral contract in the event of a breach, this type of contract is legally binding. Oral contracts
What Is an Oral Will? An oral will is a will that is made verbally to others and with the intent of ensuring that the wishes of the dying are carried out. It does not take on written form. Understanding Oral Wills Oral wills are referred to as a noncupative will or deathbed will. A
What Is an Order? An order consists of instructions to a broker or brokerage firm to purchase or sell a security on an investor’s behalf. An order is the fundamental trading unit of a securities market. Orders are typically placed over the phone or online through a trading platform, although orders may increasingly be placed
What Is an Order Paper? An order paper, or order instrument, is a negotiable instrument that is payable to a specified person or its assignee. An instrument such as an order paper is negotiable only if it is payable to the order of a specified person; meaning that it must designate an individual’s name to
What Is an Order Book? The term order book refers to an electronic list of buy and sell orders for a specific security or financial instrument organized by price level. An order book lists the number of shares being bid on or offered at each price point, or market depth. It also identifies the market participants
What Is an Order Book Official? An order book official (OBO) is the trading floor participant responsible for maintaining a list of public market or limit orders of a specific option class using the “market-marker” system of executing orders. The purpose is to maintain a fair and orderly market in the assigned options, including executing
