What Is The Options Industry Council

The Options Industry Council (OIC) is a not for profit organization that exists to assist the public in becoming informed about options through education, and options market information. For persons new to or experienced in options trading, the OIC may be useful in expanding awareness of options trading strategy and technique in addition to becoming more aware of options market news and exchanges. The OIC is sponsored by a number of options exchanges and builds awareness for the options industry in addition to educating the public on the dynamics of that industry.

Why the OIC is important

The OIC provides a comprehensive and free educational service not necessarily provided by brokerages and independent options strategy companies. These services include simulated options exchange through the OIC 'Virtual Trading System', seminars from options professionals, and free educational coursework through the OIC's 'MyPath' program. The OIC also provides a 'strategy screener' that compares and illustrates options positions and their relative risk and strengths.

The Options Industry Council is given credibility via its not for profit status, educational tools and information in addition to the sponsorship from several options exchanges such as the Chicago Board Options Exchange. These options exchanges themselves participate in the regulation of the options markets. This is done through the Options Regulatory Surveillance Authority (ORSA) which was sanctioned by the U.S. Securities and Exchange Commission in June of 2006 according to SEC Release NO. 34-53940 NO. 34-53940. The Commodity Futures Trading Commission (CFTC) is also instrumental in regulating options trading. The SEC does not directly endorse the OIC but was evidently instrumental in its creation and does provide a web link to the OIC via the SEC website.

How to benefit from the OIC

The Options Industry Council is a helpful site to visit for options traders and interested parties from many levels of experience. The course work, trading tools, market information and seminars can all prove helpful in building knowledge of the options market, becoming acquainted with options trading strategy, and learning how to trade options via simulation. By participating and learning through the OIC, investors and traders alike can learn new investment skills for free and gain know how that might cost hundreds if not thousands of dollars in formal education program making it a cost effective resource.

The Options Industry Council may not provide investors or traders with everything they need to know about trading options, but it can be helpful in learning the mechanisms of the market so they are not incorrectly used. Not knowing how to trade options yet alone how to trade in different types of market environments can be detrimental to profitable and safer options trading. Being informed about these things by the OIC potentially improves the probability of succeeding in options trading. The OIC tools and resources can build confidence, ability, awareness and skill among persons interested in options trading.

Summary

Knowing what the Options Industry Council is can benefit all persons involved or interested in options trading. The OIC is a highly regarded, thorough and educational organization that is important to the options industry and public alike. Both options traders and exchanges may benefit from the existence of the OIC as it reputably builds awareness and provides useful information about options. The site itself is functional, easy to navigate and helpful with step by step instructions, far reaching options and options market information, frequently asked questions and answers and much more. Some of the advanced features of the OIC include information on statistical indicators,

Sources:

1. http://www.optionseducation.org/ (Options Industry Council)
2. http://www.sec.gov (Securities and Exchange Commission)