Series 7 Exam Prep Options Prep 30 Option Practice Questions EXPLICATED.

[@MrBentunney]

Thanks! I can't wait to to take my 7. Been at it for 6 weeks before and after work I'm ready! Thanks for your videos from 'fabulous Las Vegas'

[@Series7Guru]

Thanks for the super chat!

[@jimmytorres6213]

Dean is the man! Extremely helpful!

[@Series7Guru]

Happy to help!

[@ambercole7995]

Thank you for the video, Dean! Always a great help! One question for you - is the max loss on a credit spread the net premiums, just like the max loss is on a debit spread? I'm having the hardest time memorizing MG/ML on spreads. Thank you!!

[@Series7Guru]

Yes.

[@Sol_knows]

I’m watching this the day before my 7 but this is helpful thank you!

[@Series7Guru]

Glad you finding it helpful. It is spot on

[@vidhyaramani3093]

Hi Dean! Thank you for all the videos! Do you have videos on non-equity option strategies?

[@Series7Guru]

Not yet. Will shortly.

[@amandahowland8277]

Hi Dean! Thanks again for another great video. I’m a bit confused on question 8 which is definitely one of the easier ones but for some reason I’m hung up on that one. Is the 700 a gain or loss?

[@Series7Guru]

It is a gain

[@Lindalouise333]

Thank you Dean, your video's have been extremely helpful to me

[@Series7Guru]

Glad you found them helpful

[@amberlarsh4636]

Hi Dean! I love your videos, especially the option lectures, but was wondering if you could clarify #18. From my understanding of credit spreads it is more cash coming in than out. I choose a) Buy 1 OMG Mar 110 call. I'm definitely going to rewatch the option videos to make sure I have a better understanding of Debit vs Credit spreads, but would appreciate any additional guidance on credit spreads!

[@Series7Guru]

Lower strike call contracts always have greater premiums. In a call spread the lower strike is always dominant. A credit spread is more money in the out. So a credit call is where we sell the lower strike and buy the higher strike.

[@honeybadger3438]

Your Channel and the material are amazing , seriously thank you very much

[@Series7Guru]

Glad you are finding it helpful.

[@bcdavis72]

This was really helpful! Thank you!!

[@Series7Guru]

Glad you found it helpful. Explicated practice are very popular on the channel.

[@DS-mi5nh]

Very helpful!!! Thank you Dean.

[@Series7Guru]

My pleasure.

[@katrinalang5462]

This is so helpful. I understand the T chart because of you

[@Series7Guru]

Now that you understand the T chart should be able to rack up some option points on your exam for sure.

[@latonnahales6851]

Very helpful! Thank you for sharing!

[@Series7Guru]

Glad you found it helpful

[@Jacob_Bunch]

Hey dean, I take my exam Friday and I’m wondering what do you think is best thing for me to do on my final day of preparation. what do you recommend?

[@Series7Guru]

Light review of your notes and at least 20 questions to keep your rhythm

[@lukethalman9552]

what video would be best to nail down my understanding of the way that the t chart works?

[@Series7Guru]

Should watch the first three videos in the option playlist kzbin.info/aero/PLK1IazV_JQbGBFN_057lrP7UPrYlIRejC

[@jaysoncella6657]

Dean, I stumbled across this question in my studies: Svetlana calls her registered representative and places an order to write an XYZ Oct 90 call, and at the same time, write an XYZ Oct 80 put. The orders are executed at a premium of 5 for the call and 9 for the put. Which of the following best describes the customer's investment strategy? I selected bearish, but the correct answer was neutral. I defaulted to bearish because the premium was greater. Could you explain why this is netural?

[@Series7Guru]

Here is a video explication of your question www.reddit.com/r/Series7/comments/w36r8m/series_7_exam_reddit_guru_says_neutral_strategies/?context=3

[@clayedwards4450]

Just passed my 7 thanks so much!

[@Series7Guru]

KUDOS on passing your Series 7 exam!! What's next? 63? 66?

[@clayedwards4450]

66!

[@Series7Guru]

@@clayedwards4450 so next stage is to become an Investment Advisor Representative !

[@clayedwards4450]

@@Series7Guru yes, will be diving right into the 66 videos. Flash cards helped a lot!

[@savagecontent8712]

Hey dean im confused, for #8 young ignored the 51 but for #9, you used the 38 instead of the 45?

[@Series7Guru]

I ignored because it wasn't the question on number eight. I didn't ignore in question nine because it was the question.

[@zenaalany4807]

so helpful , thank you so much

[@Series7Guru]

Glad you found it helpful. Never have too many practice questions

[@seabass7496]

Dean. 2 questions. Do you think the series seven exam will test us much on leaps, currency options, or yield based options? I know how to hedge making a payment in foreign currency as well as taking a payment in foreign currency and the others I’m pretty well-versed on. Second question. Number 4. I understand why we picked a but wouldn’t we pick something not in the money like b? A means we lose the stock.

[@Series7Guru]

If they test on a LEAP it will be recognizing it is the only option contract that may qualify for a long term capital gain. Question didn't ask about losing the stock. It asked which contract would have the greatest premium. Lower strike calls always have greater premiums and higher strike puts always have greater premiums.

[@seabass7496]

@@Series7Guru thanks! I’m learning options as well as prepping for the exam. Thanks for the tip on the leaps. Tina with training consultants says we may see a question on VIX so I’ve prepared for that as well. All of your option videos are so awesome, in plain English so that a caveman could understand

[@seabass7496]

@@Series7Guru I also have memorized which currency options move 2, 3, and 4 decimal spots. My weakest point is annuities so I have to nail them down

[@Series7Guru]

@@seabass7496 stay the course!

[@karoleenfrancis7526]

Can you help me understand why the answer to #9 is C. At expiration, the call is out of the money (market price 38 is less than strike price 45) so this call wouldn't be exercised, right? So, the seller keeps the premium. Is that considered a gain?

[@Series7Guru]

Yes. The maximum gain in a short option position is contract expires worthless and you keep the premium

[@karoleenfrancis7526]

@@Series7Guru Thank you. But answer C assumed it was exercised? Is C in fact the right answer?

[@Series7Guru]

@@karoleenfrancis7526 it is

[@karoleenfrancis7526]

@@Series7Guru I see where I went wrong. The call was never exercised. Not sure what I was thinking there. Thanks for the clarification.

[@alishadhs4]

do you have a video where these option equations are explained a little slowed down? all i see is a jumble of numbers, options are really difficult for me!

[@Series7Guru]

Yes, Options lectures 3 and 4.

[@nileshpalve8232]

For #9, the call wont be executed as the market price is lower than the XP (the call buyer wont buy it from us at $45 when its available in the market for $38), the option will expire, he gets to keep the $3 premium. Why isnt the premium a gain for him?

[@Series7Guru]

Because you bought the stock at 41. The 3 points you keep lowers out of pocket cost to 38.

[@mohammadkhalil175]

I just did an options practice quiz and it said LEAPS are good for the max of 28 months and not 30? I took the quiz via Pass Perfect.

[@Series7Guru]

They are wrong. Technically 39 months but in practice 30 months.

[@mohammadkhalil175]

@@Series7Guru thanks Dean.

[@ColeIsKing]

Just wrapped up another informative session! 4 more videos to go in my custom playlist! 26/30!

[@Series7Guru]

Very impressive!

[@stephaniehassan7459]

What is the answer to #10? Was it $800 loss?

[@Series7Guru]

Yes.

[@tamerkaldas6126]

question 27 , is call like put you go with lower strike to define bearish or bullish or put its different than call? because i don't know why 26,27 same answer!

[@Series7Guru]

The same answer because a debit put spread is when you buy the higher strike. Question 26. And debit put spreads are bearish. Question 27. Question 26 is about creating a debit put spread and Question 27 is about recognizing when create a debit put it is bearish. That it is the same answer.

[@stephaniehassan7459]

@@Series7Guru #26 I understand that a higher XP = lower premium. In this case, shouldn't we buy the higher XP of 90 put instead of 60 put?

[@Series7Guru]

@@stephaniehassan7459 buying or going long the 90 put is not a choice in the answer set. You are already long or have bought a put so the next leg to complete a spread is to go short a put.

[@jordannadejaynes9940]

This was my question too for 27. If the higher xp for a put spread has the higher premium wouldn’t the answer be short 1 wtf 90 put to make it bearish?

[@jeraldmundackal4820]

Didn't answer the question at #10, the answer is a 800 loss yes?

[@Series7Guru]

What is the QID?

[@AlyssaFlorio-n6y]

what is the answer to number. 10?

[@Series7Guru]

The answer key is in the video description.

[@LucasMargenot]

why is 13 120?

[@Series7Guru]

Because at 120 you make the maximum gain without the stock being called away.

[@tamerkaldas6126]

i can't understand question 13!

[@Series7Guru]

Ideal closing price is 120. The stock does not get called away because the call expired worthless. You got to keep the premium without giving up the stock. You can write another call on the same stock position.

[@connorg7346]

OMG Calls and WTF Puts. Lol

[@Series7Guru]

LOL

[@fancykeepingitcurrent9523]

Too many ads

[@Series7Guru]

Aggravating I know that's why I pay KZbin $12 a month to make them go away. You can do same.