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Guillermo Nodarse

Are you scheduled to take the Series 7 - and are anxious regarding your ability to pass this important test? If so, you are not alone; the Series 7 is one of the most stressful and challenging tests in any industry, and often times, one's future employment depends on passing the exam the first time around. Perhaps the most challenging section of the test involves Options and how they work, as well as the investing and hedging strategies that are available through their use - and few sections prove more difficult for Series 7 students. Unfortunately, the Options section often represents between 10-12% of all the questions on the entire test, so mastering this material is critically important.

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Are you scheduled to take the Series 7 - and are anxious regarding your ability to pass this important test? If so, you are not alone; the Series 7 is one of the most stressful and challenging tests in any industry, and often times, one's future employment depends on passing the exam the first time around. Perhaps the most challenging section of the test involves Options and how they work, as well as the investing and hedging strategies that are available through their use - and few sections prove more difficult for Series 7 students. Unfortunately, the Options section often represents between 10-12% of all the questions on the entire test, so mastering this material is critically important.

This Fundamentals of Options Seminar will begin at the beginning, emphasizing the conceptual underpinnings of Options - what they are, how they function, and how they are used to achieve certain desired investment outcomes. Without a clear and strong understanding of these fundamental principles, it is extremely difficult to master Options, and passing the Series 7 then becomes even more challenging.

Once you've taken this course you'll have a much stronger grasp of the key principles regarding Options. But in order to help you understand and master the more complex applications and strategies using these contracts, I created my Intermediate Options Seminar - which will further strengthen your understanding of Options and help make you a more confident and effective test taker.

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What's inside

Learning objective

Understand the fundamentals of options and how they function

Syllabus

Understand the Basics of Options specifically for Series 7
Series 7: Options Introduction
Module 1: What is an Option
Module 2: Example of an Option
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Traffic lights

Read about what's good
what should give you pause
and possible dealbreakers
Focuses on options, a challenging area on the Series 7 exam, which is often critical for securing employment in the financial industry
Emphasizes the conceptual underpinnings of options, which is essential for mastering more complex applications and strategies
Covers equity options in depth, which is a core topic for understanding investment strategies and hedging techniques
Is designed as a foundational course, and students may need to take an intermediate course to fully master options strategies

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Reviews summary

Series 7 options exam preparation

According to students, this course provides a solid foundation and is highly effective for preparing specifically for the options section of the Series 7 exam. Many learners highlight the instructor's clear explanations and ability to make complex topics understandable. The course structure, particularly the detailed breakdown of call and put options, is frequently praised as well-organized and easy to follow. Reviewers often state the material directly aligns with what is tested, making it a valuable study resource. While focused on fundamentals, the content is considered sufficiently in-depth for exam purposes.
Depth adequate for Series 7 requirements.
"Was initially concerned if 'fundamentals' would be enough, but it covers the required depth for Series 7 options."
"The level of detail provided, while foundational, is sufficient for the exam's complexity on these topics."
"Found the coverage of calls and puts comprehensive enough for the test questions."
"It doesn't get lost in overly complex theory, keeping focus on what's needed for the exam."
Provides strong foundational understanding.
"As a 'Fundamentals' course, it absolutely delivers. It built a strong base for options knowledge."
"Excellent for getting the fundamental concepts down before moving to more complex strategies (as mentioned, the intermediate course)."
"If you need to understand the core mechanics of options, this is the place to start."
"It really helped solidify the basic principles, which is crucial for the Series 7."
Modular approach aids understanding.
"The course is very well structured, building from basics up. Modules 1-16 flow logically."
"I liked how each type of option (call/put) was given detailed attention over multiple modules."
"The structure made it easy to review specific topics I was struggling with before the exam."
"Content is logically organized, making complex subjects digestible in smaller parts."
Instructor explains complex topics clearly.
"The instructor's ability to break down complex option strategies into simple, understandable terms was fantastic."
"His explanations were so clear and concise, finally understood calls and puts after this course."
"Really appreciated how he explained the 'why' behind the concepts, not just the 'what'."
"Compared to other resources, the clarity here was outstanding. Made learning options much less daunting."
Course is highly relevant for the Series 7 test.
"This course is directly applicable to the Series 7 exam. It covered exactly what I needed to know for the options section."
"Found the content here incredibly helpful in passing the options portion of my Series 7."
"A must-take if you are preparing for the Series 7 and struggle with options. It simplifies the concepts for the exam."
"Used this alongside my main study material and it made a significant difference in my understanding for the test."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Series 7: Fundamentals of Options with these activities:
Review Basic Financial Terminology
Solidify your understanding of basic financial terms to better grasp options concepts.
Browse courses on Financial Terminology
Show steps
  • Review a glossary of financial terms.
  • Take a practice quiz on key definitions.
  • Create flashcards for unfamiliar terms.
Understanding Options
Gain a more accessible introduction to options trading.
Show steps
  • Read the introductory chapters on calls and puts.
  • Review the examples of simple trading strategies.
  • Take notes on key concepts and definitions.
Options as a Strategic Investment
Expand your knowledge of options strategies beyond the basics covered in the course.
Show steps
  • Read the chapters on basic call and put strategies.
  • Study the examples of hedging strategies.
  • Take notes on key concepts and strategies.
Four other activities
Expand to see all activities and additional details
Show all seven activities
Practice Options Calculations
Reinforce your understanding of options pricing and profit/loss calculations through repetitive exercises.
Show steps
  • Find online resources with options calculation problems.
  • Work through a set of problems, focusing on break-even points and maximum profit/loss.
  • Check your answers and review any mistakes.
Participate in a Study Group
Collaborate with peers to reinforce your understanding of options concepts and strategies.
Show steps
  • Find a study group or create your own.
  • Review course materials and practice problems together.
  • Discuss challenging concepts and share insights.
Create a Presentation on Options Basics
Solidify your understanding by explaining options concepts to others.
Show steps
  • Outline the key topics to cover in the presentation.
  • Create slides with clear explanations and examples.
  • Practice delivering the presentation.
Build an Options Strategy Spreadsheet
Create a tool to visualize and analyze the potential outcomes of different options strategies.
Show steps
  • Choose a spreadsheet program (e.g., Excel, Google Sheets).
  • Design the spreadsheet to calculate profit/loss for various options strategies.
  • Test the spreadsheet with different scenarios and market conditions.

Career center

Learners who complete Series 7: Fundamentals of Options will develop knowledge and skills that may be useful to these careers:
Trader
Traders buy and sell securities, including options, on behalf of themselves or their firm. Understanding options is essential for traders. This course, Series 7: Fundamentals of Options, helps build a foundation for understanding options. The focus on the basics of options and how they function assists the trader in making informed decisions. The content on call and put options also helps the trader.
Stockbroker
Stockbrokers buy and sell stocks and other securities for their clients. They need a strong understanding of options to advise their clients effectively. This course, Series 7: Fundamentals of Options, will prove useful because it explains the fundamentals of options and how they function. With a clearer understanding of options, the stockbroker can better advise clients on their investment strategies. The modules on call and put options can help a stockbroker explain the nuances of these financial instruments.
Financial Analyst
A financial analyst evaluates financial data to provide guidance to individuals and companies making investment decisions. The core of this role involves understanding financial instruments and strategies, exactly the kind of knowledge this course provides. The course on Fundamentals of Options will prove useful as the analyst seeks to understand options and their roles in investments. Specifically, the focus on key principles regarding options in this course helps build a foundation for utilizing options in financial analysis.
Portfolio Manager
Portfolio managers are responsible for making investment decisions and managing investment portfolios to meet specific goals. Options can be a valuable tool for managing risk and enhancing returns, making courses like this helpful. The course on Fundamentals of Options emphasizes the conceptual underpinnings of options, how they function, and how they are used to achieve investment outcomes. A portfolio manager may find the segments on equity options the most helpful.
Securities Analyst
Securities analysts research and analyze securities, such as stocks and bonds, to provide recommendations to investors. Understanding options is important for a thorough analysis of securities. The course on Fundamentals of Options helps the securities analyst understand the role of options. By emphasizing the conceptual underpinnings of options, one will better understand how options are used to achieve certain desired investment outcomes.
Investment Banker
Investment bankers help corporations and governments raise capital by issuing and selling securities in the financial market. Options play a crucial role in various investment banking activities, and this course is a great start to understanding them. The course, Series 7: Fundamentals of Options, emphasizes the conceptual underpinnings of options, which is what an investment banker can use to grasp the financial instruments. The course's outline covering call and put options for stocks can assist the investment banker in understanding the complexities of equity options.
Financial Planner
Financial planners help individuals and families manage their finances and achieve their financial goals. A strong understanding of investment options, including options, is essential for financial planning. This course, Series 7: Fundamentals of Options, helps build a strong grasp of the key principles regarding options. The modules in this course on call and put options prove useful for a financial planner advising people.
Hedge Fund Manager
Hedge fund managers oversee investment portfolios, often employing advanced strategies to generate returns for investors. A deep understanding of options is essential for many hedge fund strategies. This course on Fundamentals of Options may be useful for understanding these financial instruments. This course begins at the beginning, emphasizing the conceptual underpinnings of options. For a hedge fund manager, the modules on call and put options may be especially relevant.
Chief Investment Officer
A Chief Investment Officer oversees the investment activities of an organization and develops investment strategies. Understanding options is essential. This course on Fundamentals of Options may assist the Chief Investment Officer in decisions around investment activities. The course emphasizes the conceptual underpinnings of options, which is valuable in a leadership role. The content about terminology assists in communicating with other professionals.
Derivatives Trader
Derivatives traders specialize in buying and selling derivative instruments, including options. A strong understanding of options is crucial for success in this role. This course on Fundamentals of Options may be useful because it explains the basics of options. The emphasis of this course on the conceptual underpinnings and terminology helps build a foundation for a derivatives trader.
Quantitative Analyst
Quantitative analysts, also known as quants, use mathematical and statistical models to solve financial problems. Options pricing and risk management often rely on complex models. This course may be useful in building the quantitative analyst's underlying knowledge. The course begins at the beginning, emphasizing the conceptual underpinnings of options. This allows the quantitative analyst to better understand how options function.
Risk Manager
Risk managers identify and assess potential risks to an organization, and then develop strategies to mitigate those risks. Options are frequently used in risk management, making the understanding of options useful to the risk manager. This course may be useful in helping the risk manager learn the basics of options and how they function. The material in this course on call and put options helps the risk manager understand how these instruments can be used to manage risk.
Underwriter
Underwriters assess the risk of insuring or investing in something. This can include evaluating the risk associated with options. The course, Fundamentals of Options, may be useful for the underwriter in assessing risk. The course describes the basics of options and how they function, providing the underwriter with more knowledge to do their job. The content on call and put options may prove most beneficial.
Compliance Officer
Compliance officers ensure that a company adheres to all relevant laws and regulations. In the financial industry, this includes the trading of options. This course on Fundamentals of Options may give more insight to the compliance officer. With greater subject knowledge, the compliance officer will be able to manage regulatory matters more effectively. The focus of this course on the fundamentals of options may prove useful.
Auditor
Auditors examine financial records to ensure accuracy and compliance. This can include auditing transactions involving options. A deeper understanding of options may be useful. This course may be useful in explaining the fundamentals of options. The modules in this course may help the auditor to examine the records by improving the auditor's subject matter knowledge.

Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Series 7: Fundamentals of Options.
Comprehensive guide to options trading strategies. It provides in-depth explanations of various option strategies, including hedging and speculation. While it goes beyond the scope of the Series 7 exam, it offers a deeper understanding of options concepts, making it a valuable resource for serious students. It is commonly used by industry professionals.
Provides a clear and accessible introduction to options trading. It covers the basics of calls and puts, as well as simple strategies for beginners. It good starting point for those who are new to options and want to gain a solid foundation. This book is more valuable as additional reading than it is as a current reference.

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