Options Trading Study Guide 2026
Everything you need to pass the Options Trading exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 Options Trading Exam Format at a Glance
📚 Options Trading Topics to Study (33)
✍️ Sample Options Trading Questions & Answers
1. If you are short a put and it is assigned, what position will you hold in your account?
When a short put is assigned, you are required to buy 100 shares at the strike price, resulting in a long stock position at that cost basis.
2. Gamma measures the rate of change of which Greek?
Gamma measures how quickly delta changes as the underlying price moves.
3. When an option holder exercises their right, what does the option writer (seller) experience?
When an option holder exercises, the writer is assigned and must fulfill their contractual obligation — delivering shares for calls or buying shares for puts.
4. Theta decay is generally most harmful to which position?
Theta erodes the value of long options over time, hurting the buyer as expiration nears.
5. At-the-money options typically have a delta close to:
At-the-money options have a delta of approximately 0.50, reflecting roughly equal probability of expiring in or out of the money.
6. Implied volatility represents the market's expectation of:
Implied volatility reflects the market's forecast of the underlying's future price movement.