Options and Packaged Products
Free FINRA SIE (Securities Industry Essentials) lesson in Understanding Products and Their Risks. 19 min read, ~2,895 words.
One equity option = 100 shares; premium quoted per share, total cost = premium × 100. Call buyer profits when price rises above strike + premium; put buyer profits when price falls below strike − premium. Naked (uncovered) call writer has unlimited loss potential; covered call writer caps gain at...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- B7
- B8
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