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Retirekit Glossary O


O


OBV
On Balance Volume (OBV) is a momentum indicator that relates volume to price change.

On Balance Volume is a running total of volume calculated by adding the day’s volume to a cumulative total when the price closes up, and subtracting the day’s volume when the security’s price closes down.
It shows if volume is flowing into or out of a security.
When the security closes higher than the previous close, all of the day’s volume is considered up volume. When the security closes lower than the previous close, all of the day’s volume is considered down volume.

Odd Lot
This refers to a trade order for less than the generally accepted number of units or shares for a security. For bonds, it is an order for less than 100 bonds.

For example, a trade order for less than 100 shares of stock is for an odd lot.

Offering Period
A period of time, with a stated beginning and end date, during which payroll deductions are accumulated for the purchase of stock in an employee stock purchase plan. Each offering period may have its own rules for employee eligibility, stock purchase discount, and other terms. Refer to your plan rules for more information.

For new issue fixed income securities (e.g., bonds), this is the expected start and end date of the period during which you can place an indication of interest in a new issue offering.

Offer Price
The price at which mutual fund shares were sold.

For a no-load fund, this price is the same as the NAV.
For fixed-income securities (e.g. bonds), this is the price for the securities.

Offset

The distance between the strike prices for a given strategy.
Example:      50 strike – 55 strike
                    Offset = $5

                    50 strike – 60 strike
                    Offset = $10

144A
A 144A fixed income security is a private placement bond available only to qualified institutional investors.

144(k)
Securities have this restriction if the securities are restricted, but the stock owner is not an affiliate of the company and the securities were acquired from the company or affiliate of the company more than two years ago.

You can sell this type of stock without having to satisfy most of the requirements of Rule 144.

1 Yr. %
The percent gain or loss that the portfolio has achieved over the previous one-year period. Refer to the “as of” date to determine the exact period.

On the Close
A time-in-force restriction that can be placed on the execution of an order. This restriction requires that the order is executed as close as possible to the closing price for a security. All or any part of the order that cannot be executed at the closing price is canceled.

On the Open
A time-in-force restriction that can be placed on an order. This restriction requires that the order is executed as close as possible to the opening price for a security. All or part of the order can be executed. Any part of the order that cannot be executed at the opening price is canceled.

One Cancels the Other (OCO)
A one cancels the other order is an order whose execution results in the immediate cancellation of an order linked to it. Cancellation of the linked order happens on a best efforts basis. In a one cancels the other order, both orders may be live in the marketplace at the same time. The execution of either order triggers an attempt to cancel the unexecuted order. Partial executions will also trigger an attempt to cancel the other order.

100-Day Moving Average
The average closing price of the stock ove rthe last 100 trading days. Moving averages can be used to guage the direction of price movement in a stock.

One Triggers the Other (OTO)
A one triggers the other orders involves two orders—a primary order and a secondary order. The primary order may be a live order at the marketplace. The secondary order, held in a separate order file, is not. If the primary order executes in full, the secondary order is released to the marketplace and becomes live. An OTO order can be made up of stock orders, option orders, or a combination of both.

Open Interest
The total number of outstanding option contracts for this security, that is the number of option contracts that have not been exercised, closed out, or allowed to expire.

Open Order
This is an order status indicating that an order that has been placed and no part of the order has been executed.

Open Price
The price of the security at the start of the current trading day.

Operating Margin, TTM (%)
This value measures the percent of revenues remaining after paying all operating expenses. It is calculated as the trailing 12 months (TTM) operating income divided by the trailing 12 months total revenue multiplied by 100.

Option
An option is a right to buy or sell shares at a guaranteed price for a specific period of time. With a call option, the buyer has the right to buy shares of the underlying security at a specific price for a specified time period. With a put option, the buyer has the right to sell shares of the underlying security at a specified price for a specified period of time.

Option Adjusted Convexity
Option Adjusted Convexity is the change in price of the bond not explained by option-adjusted duration. It is a measure of the curvature of the price-yield relationship of a bond after adjusting for any embedded options. The calculations are based on the Black-Karasinski model (an option valuation model in which the interest rate term structure is lognormal), for which the key assumptions are:


  • Volatility: Municipal Bonds: 8.00; Corporate/Agency Bonds: 14.00

  • Mean Reversion for all bond types: 0.00


The calculations use the current offered price as the price input versus the previous day’s closing yield curve. All calculations are provided by BondDesk, LLC.

Option Adjusted Duration
Option Adjusted Duration is the modified duration of a bond after adjusting for any embedded optionality. The Option Adjusted measure of duration takes into account the fact that yield changes may change the expected cash flows of the bond because of the presence of an embedded option, such as a call or put. The calculations are based on the Black-Karasinski model (an option valuation model in which the interest rate term structure is lognormal), for which the key assumptions are:


  • Volatility: Municipal Bonds: 8.00; Corporate/Agency Bonds: 14.00

  • Mean Reversion for all bond types: 0.00


The calculations use the current offered price as the price input versus the previous day’s closing yield curve. All calculations are provided by BondDesk, LLC.

Option Adjusted Spread
Option Adjusted Spread is a measure of a bond’s extra return over the return of a comparable Treasury bond net of the cost of any embedded options. It is calculated as the spread over the Treasury spot curve that equates the present value of a bond’s cash flows to its market price, incorporating the fact that the bond’s cash flows may change under different interest rate environments. The calculations are based on the Black-Karasinski model (an option valuation model in which the interest rate term structure is lognormal), for which the key assumptions are:


  • Volatility: Municipal Bonds: 8.00; Corporate/Agency Bonds: 14.00

  • Mean Reversion for all bond types: 0.00


The calculations use the current offered price as the price input versus the previous day’s closing yield curve. All calculations are provided by BondDesk, LLC.

Option Adjusted Yield
Option Adjusted Yield is calculated by adding/(subtracting) the value of a call option/(put option) to the bond’s market price to obtain the price of an otherwise equivalent but option-free bond. The yield that equates this new higher/(lower) price to the bond’s cash flows to maturity is the Option Adjusted Yield.

Option Agreement
An agreement between you and Fidelity that details the option trading rules for your brokerage account.

Option Commission Schedule

Trades placed via Fidelity.com, Fidelity Anywhere, or Fidelity Active Trader Pro – $7.95 plus $.75 per contract
Trades placed via Fidelity Automated Service Telephone (FAST®) – $12.95 plus $.75 per contract
Trades placed via a Fidelity representative $32.95 plus $.75 per contract


  • Buy to close trades:
    Regular online stock rates apply when the contract price is $0.65 or less, or regular option rates apply when the contract price exceeds $0.65.

  • Stock Call/Put Option Assignments:
    Online stock rates apply.*

  • Index Option Assignments:
    Online stock rates apply.

  • Option Exercises:
    Online stock rates apply.


Commissions and related charges are subject to change without notice.

Optionee
Anyone who has been granted stock options and still holds them.

Option Grant
Refer to Grant.

Option Level
One of five levels of option trading that define the types of option trades you can place if you have an Option Agreement on file with Fidelity.

The option trades allowed for each of the five option trading levels:


  • Level 1: covered call writing of equity options

  • Level 2: level 1 + purchases of calls and puts (equity, index and interest rate index), writing of cash covered puts, and purchases of straddles/combinations (equity, index and interest rate index). Note that customers who are approved to trade option spreads in retirement accounts are considered approved for level 2.

  • Level 3: levels 1, 2, + equity spreads, covered put writing.

  • Level 4: levels 1, 2, 3 + uncovered (naked) writing of equity options and uncovered writing of straddles/combinations on equities

  • Level 5: levels 1, 2, 3, 4 + uncovered writing of index options, uncovered writing of straddles/combinations on indexes, and index spreads

Option Positions
Margin requirements are related to single- or multi-leg option positions. Market Value is the sum of all option positions.

Options
A contract that grants the buyer the right, but not the obligation, to buy or sell a specific number of shares of a security at a specified price by a specified date. The writer of the contract has the obligation to sell or buy a specific number of shares of the security at the specified price if the contract holder chooses to exercise the contract. The buyer is said to have a long position, and the writer is said to have a short position.

Options Canceled
The number of stock options that have been canceled because the options were not exercised prior to the expiration date, or because you no longer work for the employer who issued them.

Options Date
The date on which an options issuer (e.g., your company) awarded you options.

Options Exercisable
This refers to the total number of stock options across all of your stock option grants for which you have the right of ownership and that are eligible for exercise.

On the Stock Option Summary screen, the total exercisable options across all of your stock option grants and per grant display.

Options Exercised
For a stock option grant, the number of stock options through an exercise and sell or an exercise and hold order.

Options Granted
The number of stock options an issuer (e.g., your company) has awarded to you. Options give you the right to purchase a specific number of shares of the underlying stock at a specific price for a specified period of time.

Options ID
The unique number that identifies a particular option.

Options in the Money
Options that have intrinsic value. A call option is considered “in the money” if the price of the underlying security is higher than the striking price of the call. A put option is considered “in the money” if the price of the security is lower than the striking price.

Options Outstanding
The number of options, including vested options and unvested stock options, that you hold. This is the number of options you were granted less the number of options previously exercised and less any that may have been canceled.

Options Price
This field displays the total cost of the option.

Option Value
Refer to Option Positions.

Order
An action, executed in a market on your behalf by Fidelity, to buy or sell shares of a security. See Orders for more information.

Order Book Quote
Expanded quote information available only during Extended Hours trading sessions. Order Book quotes include the current ten best bid and ten best ask ECN Extended Hours orders for a specified security, available for matching from one or more ECNs. The order information is automatically updated every two seconds throughout Extended Hours trading.

In addition to the best current bid and ask orders, Order Book quotes also supply the following information:

Order Confirmation Number
The unique number used to identify a trade order. This number is:


  • Displayed on the Order Confirmation screen after you place an order

  • Printed on the print confirmation Fidelity sends you after an order has executed
 
 
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