Offer - An offer is a preliminary agreement by a buyer or seller to buy or sell an asset that, if accepted, has legal force. Another definition of an offer is the act of selling something or submitting a purchase bid.
OHCL chart- A specific type of bar chart that displays the open, high, low, and closing prices for each period. OHLC charts are very helpful to traders since they display the four main price data points, providing a complete picture of price action during a specific period of time (daily chart, hourly chart, 15-min chart...).
Omega - Omega is a measure of options pricing, much like the Greeks for options, which track various aspects of the option itself. Omega expresses how much the value of an option changes relative to how much the underlying price changes. This determines how much leverage an options position has.
On balance volume (OBV) - A technical trading momentum indicator that makes use of volume flow to forecast changes in price. Granville, the OBV creator, invented this indicator to help predict when significant changes in the markets would occur based on changes in volume, believing that volume was the driving force behind market performance. In his book "New Key to Stock Market Profits", he compared OBV's predictions to "a spring being wound tightly." He thought that when volume spikes significantly without a major change in the stock's price, the price will eventually follow, with either a rally to the upside (if the bulls were pressing), or rolling over (if the bears stepped in).
One-cancels-the-other order (OCO) - A one-cancels-the-other (OCO) order consists of two conditional orders that state that if one of them is executed, the other one will be immediately canceled. An OCO order on an automated trading platform sometimes combines a stop order and a limit order. The other order is automatically canceled when the stop or limit price is reached and the order is executed. OCO orders are used by more experienced traders to limit the risk after entering a trade.
Opec basket - The OPEC Basket is a weighted average of the global oil prices from the various OPEC members. Organization of Petroleum Exporting Countries (OPEC) members submit the data that serves as the foundation for the basket. For those who monitor the price of oil and the stability of the international oil market, the basket serves as a benchmark or reference point.
Option chain - All of the available options contracts for a certain security are listed in an options chain, sometimes referred to as an option matrix. For each listed put and call inside a specified maturity period, together with their expiration and strike values, volume and pricing data are displayed. The chain will normally be divided into calls and puts and classified by expiration date.
Options contract - An options contract is an arrangement between two parties to enable a potential transaction on an underlying security at a predetermined price, known as the striking price, before or on the expiration date.
Options on futures - A futures contract option gives the holder the option to purchase or sell a particular futures contract at a striking price on or before the option's expiration date, but not the obligation to do so. These operate similarly to stock options but differ in that a futures contract serves as the underlying security instead of a stock.
Option premium - The current market value of an option contract is known as an option premium. It is thus the money received by the seller (writer) of an option contract to another party. Premiums for in-the-money options are made up of intrinsic and extrinsic value. Premiums for out-of-the-money options only include extrinsic value.
Option series - The term "option series" describes a collection of options on an underlying security that have the same defined strike price and the same expiration month. Call and put options, however, are a part of different series. For instance, a call option series would consist of the calls that are open on a particular security at a particular strike price and would expire in the same month.
Optionable stocks - A stock is considered to be optionable if its shares have the volume and liquidity required for an exchange to offer its options for trading. Exchanges require that certain conditions be met in order for a stock to be optionable, such as a minimum share price, number of shares outstanding, and minimum unique shareholders, among others.
Order - An order is a set of instructions sent to a broker or brokerage firm to buy or sell a security on behalf of an investor. Typically, orders are placed over the phone or online through a trading platform. However, automated trading systems and algorithms are increasingly being used to place orders. The process of order execution begins when an order is placed.
Order-send-order (OSO/OTO) - The term "order-sends-order" (OSO), also known as "order-triggers-other" or "one-triggers-other" (OTO), refers to a group of conditional orders that state that if one order (the primary order) executes, the other orders will be automatically input (the secondary order or orders). OSO/OTO orders can take many different forms, such as take-profit plans and bracketed orders. OSO/OTO orders are used by seasoned traders to limit risk and lock in profits.
Oscillator - An oscillator is a technical analysis indicator that creates high and low bands between two extreme values and then displays lines that oscillates between these two areas. Oscillators are trend indicators that are used by traders to identify short-term overbought or oversold positions. Technical analysts interpret information as overbought or oversold depending on the oscillator's value's proximity to either extreme values. When the oscillator's value is close to being oversold, it points to a potential buying opportunity. When the oscillator's value is close to being overbought, it points to a potential selling opportunity.
Overbought - When a security is thought to be trading above its inherent or fair value, it is said to be overbought. Overbought often refers to recent or short-term price movement in the security and expresses the belief that the market will soon correct the price. Technical analysis of the security's price history is frequently what leads to this assumption; however fundamental analysis can also be used and lead to this conclusion. An overbought stock can be a suitable candidate for selling.
Over the counter (OTC) - Trading stocks over-the-counter (OTC) means doing it through a network of broker-dealers rather than on a centralized exchange like the New York Stock Exchange. Stocks, bonds, and derivatives, financial contracts whose value is derived from an underlying asset like a commodity, can all be traded over the counter. Securities of companies that do not fit the criteria to list on a standard market exchange, such as the NYSE, can still be traded OTC but may still be subject to Securities and Exchange Commission regulation.
Oversold - An asset is said to be oversold when its price has dropped significantly and there is a chance for the price to bounce. Being oversold doesn't guarantee a price rally will occur soon or at all since an oversold state might linger for quite some time. Oversold and overbought levels are identified by numerous technical indicators. These technical indicators base their evaluation on how the current price is moving in relation to earlier prices. Fundamental analysis can be used to determine whether an asset may have been oversold and has departed from its usual value measurements.
Out of the money (OTM) - An option contract that only has extrinsic value is referred to as being "out of the money" (OTM). The delta value of OTM options will be lesser than 0.50. The strike price of an OTM call option will be more than the market value of the underlying asset. An OTM put option, on the other hand, has a strike price that is less than the underlying asset's current market value.
Overvalued stock - A stock is considered to be overvalued if its current price is higher than its profit estimates or price-to-earnings (P/E) ratio would indicate. As a result, analysts and other economic experts anticipate a gradual decline in price.