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| Open Interest |
The number of outstanding option contracts in the options market. |
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| Open Order | is alternatively referred to as a good till cancelled order, and remains open until a broker places the order or the client cancels it.
An investor places an order like this to ensure that before the order is filled that the investment is at a certain price. The client can decide to cancel the order or change the price target if the order has not yet been filled.
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| Open-End Fund | A mutual fund that has no maximum amount of shares that it will issue. When demand is high enough the fund will issure shares no many how many investors there are. Open-ended funds also buy back shares when investors want to sell. |
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| Operating Margin | Is used to compare the company's pricing strategy and operating efficiency. Operating margin is equal to the company's operating income divided by its net sales. It is used to view the company's revenue that is left over after paying for variable costs such as wages. A good operating margin is imperative for a company to be able to pay for its fixed costs eg. interest on debts. |
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| Operating Profit | is arrived at by using a simple equation. It is equal to a company's revenue minus expenses that are used to keep the business going. Another way it is expressed is EBIT or earnings before interest and taxes. |
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| Option | Allows the buyer, but does not require them, to purchase a security at a predetermined price on or before a defined date. There are two types of options; call options and put options. Essentially call options are betting that shares will be worth more than the price the agreed to pay for the option, yielding them gains for all of the value of the share above the option price. While put options are betting against the option price betting that they will fall below the option price. |
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| Option Cycle | Months in which option contracts usually expire. There are typically three option cycles: JAJO - January, April, July, and October MJSD - March, June, September, and December FMAN - February, May, August, and November |
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| Options Contract | An options contract represents one hundred underlying shares in the company. Options are quoted on a per share basis. |
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| Originator | The first investment bank to that promotes a new security issue. Frequently they become the lead underwriter for that offering. |
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| Out of the Money | When an option trader bets the wrong way on an option, for call options when the stock or other type of security is worth less than the options strike price. The opposite is true for put options. If the contract is at maturity it renders the contract worthless. |
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