KNOWLEDGE OF OPTIONS IMPORTANT FOR SIE EXAM

Our recently published study text, Study for the Securities Industry Exam (SIE), contains 17 chapters, closely following the official FINRA Study Guide for the exam.

One of the important topics that you need to know for the SIE Exam is options. (See 2.1.3 in the Study Guide.) Our book Study for the SIE Exam covers options in depth and detail.

Here are the main topics which our Chapter 5 covers on Options. Be prepared for the SIE Exam. Don't walk in on the test without a working knowledge of options.

Call and Put options
Options Disclosure Document
How to enter options tickets
Long Calls
Short Calls
Long Puts
Short Puts
Terminology on short options
Closing out long options
Closing out short options
Meaning of options positions
Options strategies
Bullish options
Bearish options
Option Strike Prices
Option Premiums
writing covered options
Writing uncovered options
Short stock & short put
In-the-money options
Out-of-the-money options
American settlement
European settlement
Options expirations time and date

Our book is available at Amazon in both soft cover paperback version and Kindle e-book versions. Here is the link to Amazon.


Comments

Post a Comment

Popular posts from this blog

SIE EXAM INCLUDES QUESTIONS ON DEPOSITORY CLEARING CORPORATIONS, SO BE PREPARED!

Planning to take the Securities Industry Essentials (SIE) exam soon? Be prepared for questions asking about depository clearing corporations. Can you say in one sentence the purpose and function of the Depository Trust & Clearing Corporation (DTC)? No response? Then you are like most SIE candidates, so don't feel too bad! Bob Eder's Study for the SIE Exam covers the definition and functions of the DTC, as well as the Options Clearing Corporation and ACATS. Here is a section from Bob Eder's book taken from page 12: Depository Trust & Clearing Corp. (DTCC) (1.1.4)  "The Depository Trust provides clearing and transfer services to the brokerage industry in the U.S. and throughout the world. With volume of securities trades approaching millions on a daily basis, imagine brokerage operations without a centralized entity that could match buys with sells, and keep brokerage firm back offices running smoothly and efficiently. What chaos without an organization like the
Read more

TAKING THE SIE EXAM? DID YOU KNOW THAT THE LARGEST SECTION OF THE TEST IS SECTION 2 PRODUCTS AND THEIR RISKS?

Have you looked at FINRA's SIE Exam Content Outline or Test Specifications? You would find that the largest percentage of questions on the SIE Exam comes from Section 2, Understanding Products and Their Risks . Forty-four percent of the questions on your test will come from this Section. For example, Section 2 covers Equity Securities, including knowledge of voting rights, convertible securities, and selling control or restricted stock. Bob Eder in his Study for the Securities Industry Essentials (SIE) Exam has detailed coverage of these items. Here is a sample of Bob Eder's treatment: Control Stock (2.1.1) Control stock denotes shares that have been purchased by a control person or by an affiliated person. When a person owns shares in a company in which he/she is an officer, controlling person, termed an "affiliated person," there are also restrictions on the sale of that stock. The SEC calls the shares, "control shares." Only control or affiliated perso
Read more

SEC CHARGES 10 BROKER/DEALERS/INVESTMENT ADVISERS WITH FAILURE TO KEEP RECORDS OF "OFF-CHANNEL COMMUNICATIONS" WITH CLIENTS

FINRA makes available a Content Outline for the Securities Industry Essentials (SIE) Exam for those planning to sit for the exam. This Content Outline describes the subject matter of the SIE Exam. The SIE Content Outline includes Section 3.2.4 which covers Books and Records Regulations, and it encompasses the use of social media to communicate with clients, digital messaging, and internet communications. From time to time, the SEC issues press releases about penalties and charges brought against broker/dealers and advisers. Here is a recent one that imposes penalties on 10 firms for inadequate Record-Keeping of electronic communications, called "Off-Channel Communications." We include the SEC Release here because it demonstrates that a broker or adviser must treat the rules as having real life consequences, potentially bringing serious penalties and large fines for non-observance. Students who plan on sitting for the SIE Exam should pay careful attention to the SEC Release as
Read more