HAVE A WORKING KNOWLEDGE OF OPTIONS FOR THE SECURITIES INDUSTRY ESSENTIALS (SIE) EXAM!

Bob Eder's Study for the Securities Industry Exam (SIE) contains 17 chapters, closely following the official FINRA Content Outline for the SIE Exam.

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

Be prepared for Options on the SIE Exam. Don't walk in on the test without a working knowledge of Options.

Here is a Bob Eder question on Options. See if you can answer it correctly!

Which two of the following are bullish options strategies?

i.      long calls
ii.     short calls
III.    long puts
iv.    short puts

a.    i and iii
b.    i and iv
c.    ii and iii
d.    ii and iv

The answer is (b), long calls and short puts. 

Long calls are bullish because they are profitable if the underlying stock goes up. Then the value of a call goes up. 

Short puts are bullish because they are  profitable if the underlying stock goes up, in which case, the put expires and the put writer walks away with the premium free and clear.

Here is the link to FINRA's Content Outline for the SIE Exam. See the references to Options in Section 2.1.3. 

Study for the Securities Industry Essentials (SIE) Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link to Bob Eder's book on Amazon.

For questions about Bob Eder's Study for the Securities Industry Essentials (SIE) Exam, or questions in general about the SIE Exam, or about Options, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. See Bob Eder's Author Page on Amazon.com.

P.S. Please consider reviewing Bob Eder's Study for the SIE Exam on Amazon. Your opinion matters!

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