Hedging options

Hi! The chart that is used for options (Great for our cheat sheet) that tells you what the max gain, max loss, BE, bearish, bullish, etc. Can that help in anyway with hedging options?

I try to do the T chart, but get confused alot.

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Hi @Gastric_olive_hippop, thanks for reaching out!

Our FINRA SIE resources and dump sheets can definitely be helpful when you’re thinking through how you’d use options to hedge.

Options are a topic that a lot of people find tricky. In general, options tend to be moderately tested on the SIE and heavily tested on the Series 7, but since FINRA exams are randomized it’s impossible to know exactly how many questions you’ll be asked on them.

Rather than memorizing the dump sheets, my recommendation is to carefully re-read those chapters. Take your time to go step by step through the scenario walkthroughs. It’s important that you thoroughly understand the core concepts so you can solve any situation you’re given!

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