Stock Options Practice Exam
Stock Options Practice Exam
About Stock Options Exam
The Stock Options Certification helps job seekers, traders, and finance professionals assess you on how to trade options confidently. Stock options are powerful tools used for hedging and making profits in both rising and falling markets. This course assesses you on how call and put options work, how to plan trades, manage risks, and follow regulations. It’s perfect for beginners and intermediate learners. By earning this certification, you prove your knowledge in financial derivatives and increase your chances of landing jobs in trading, wealth management, or investment firms. It also supports freelance or personal trading careers with practical strategies and smart decision-making.
Who should take the Exam?
This exam is ideal for:
- Finance students and MBA aspirants
- Stock market traders and investors
- Wealth managers and financial advisors
- Working professionals in banks, NBFCs, or brokerage firms
- Freelancers and side-hustle traders
- Anyone interested in derivatives and market strategies
Skills Required
- Understanding of call and put options
- Ability to price and evaluate option contracts
- Use of trading strategies in real scenarios
- Risk analysis and loss limitation
- Regulatory and compliance knowledge
- Market analysis using technical indicators
- Decision-making under uncertain market conditions
Knowledge Gained
- Basics of stock options and market behavior
- Key terms like strike price, premium, volatility
- Different types of strategies to earn or hedge
- How to manage trading risk effectively
- Tools for technical and market analysis
- Rules and legal framework for safe trading
- Real examples of how to use options smartly
- Skills to improve profits and lower risk in trading
Course Outline
The Stock Options Exam covers the following topics -
Domain 1 - Introduction to Stock Options
- What are options?
- Types: Call and Put options
- Why investors use options
Domain 2 - Option Terminology
- Strike price, premium, expiration
- In-the-money, out-of-the-money
- Volatility and time decay
Domain 3 - Option Pricing Models
- Intrinsic and extrinsic value
- Black-Scholes model basics
- Impact of market factors on pricing
Domain 4 - Options Trading Strategies
- Covered call and protective put
- Straddle, strangle, spreads
- Bullish vs. bearish setups
Domain 5 - Risk Management
- Limiting losses with stop orders
- Position sizing
- Hedging using options
Domain 6 - Market Analysis for Options
- Technical analysis basics
- Using indicators for entry/exit
- Implied volatility and trends
Domain 7 - Legal and Regulatory Framework
- SEBI regulations in India
- Exchange-traded vs. OTC options
- Taxation and compliance
Domain 8 - Practical Applications
- Using options in portfolio management
- Derivatives in corporate finance
- Real-world case studies
