Definition of OPRA
The Options Price Reporting Authority (OPRA) is a committee comprised of representatives from participating securities exchanges responsible for providing last-sale options quotations and information from the participating exchanges. Essentially, OPRA consolidates and disseminates essential market data related to options trading, allowing traders to stay updated on the ever-changing dance of market prices.
OPRA vs Market Data Vendor Comparison
| Feature | OPRA | Market Data Vendor |
|---|---|---|
| Data Type | Last-sale prices & quotes for options | Various financial instruments and options |
| Primary Users | Brokers, financial firms, traders | Wider audience including retail investors |
| Data Feed | National best bid and offer | Customizable feeds depending on service |
| Source Integrity | Backed by exchanges | Varies by vendor, can include multiple sources |
| Accessibility | Centralized and regulated | May require subscriptions or licensing |
Examples of OPRA in Action
- Trade Data: When an options contract is bought or sold, OPRA provides the last sale price, allowing traders to assess recent market activity.
- Quote Data: If a trader wants to check the current best bid and offer for a specific options contract, they can refer to OPRA’s data feed.
Related Terms
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Options Chain: A table displaying available options contracts for a specific security, listing their various bids and offers. Think of it like a buffet menu for options trading – choose your favorite dish (contract), and the price reflects how hungry other traders are!
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Bid-Ask Spread: The difference between what buyers are willing to pay for an options contract (the bid) and what sellers are asking (the ask). If the spread were a gap in your wallet, you’d want it to be as close as possible to avoid losing extra cash!
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Last Sale Report: A report detailing the most recent trade of an options contract, it’s like the scoreboard in a sports game — gives you the latest scoring updates!
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title OPRA Services Breakdown
"Trade Data": 50
"Quote Data": 30
"Consolidation & Dissemination": 20
Humorous Quips
- “Why do options traders love OPRA? Because they can finally find a bid worth cooking!”
- “Trying to trade options without OPRA is like going on a treasure hunt without a map – good luck finding the buried gold!”
Fun Facts
- OPRA was established in 1975 and is unique because it acts as a “quasi-regulatory” body overseeing the exchange of data across various venues.
- Like a superhero of the trading world, OPRA consolidates and provides the market data necessary for traders to make informed decisions.
Frequently Asked Questions
What does OPRA do?
OPRA aggregates and disseminates price quotations for listed options contracts in the U.S., providing data feeds for financial firms, brokers, and traders.
How does OPRA benefit traders?
By providing last-sale data and quotes, OPRA helps traders access real-time pricing information, facilitating informed trading decisions.
Is OPRA data accessible to the general public?
While OPRA data is primarily designed for financial professionals, some platforms offer limited access to retail investors.
References & Further Study
- Options Price Reporting Authority (OPRA) Official Website
- “Options, Futures, and Other Derivatives” by John C. Hull
- “The Options Playbook” by Brian Overby
Test Your Knowledge: OPRA Quiz!
Remember, trading options without understanding OPRA is like trying to roller skate in the dark - potentially thrilling but decidedly dangerous! 🌟 Keep your eyes open and data closer!
