When you are taking your FINRA Series 7 exam, options typically are number one on the anxiety list. As an instructor, I have , as well, stressed over "Options Day". It is what my wife and I facetiously refer to as "Herding Cats Day".
Lets try this to help reduce some of the anxiety - I believe you can think of options in just a few categories; rather then the 4,582 random facts that you have been performing your mental gymnastics on. Here is how I think of the options content on the test:
1. Option strategies - Individual options, hedges, straddles and spreads
2. Non-equity options
3. Administrative and Compliance
Now I have just three "zip files' in my random access memory (also known as my brain). I can then easily associate certain key facts when expanding each zip file if called upon in a test question. I have created a cheat sheet which corresonds to each option strategy that allows me easy reference to answer any question. My students, with a nearly 80% average pass rate on options, and I have, for years, refered to our cheat sheet as "Jane Fonda's Option Aerobics Reference Guide" ( humor and silliness helps reduce anxiety!).
Our cheat sheet has reduced 67 pages of text down to two! So if you're getting tired of the mental gymnastics - KEEP IT SIMPLE. Think of options as a few rather then many. It's all about passing the first time and getting your life back!
If you're interested, you can find our Options Video Course for FREE as well as the entire Series 7 Video Course ($99) at: testgeekexamprep.teachable.com