Taking the 7 on tues

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Aug 7, 2008 9:14 pm

Im taking the 7 this tues. I have been using STC. Taken 7 practice exams since finishing "studying" scored 87, 86, 80, 83, 79, and 83. Think I'm set?!

for those of you that have taken it, is the options more identifying this is a straddle, this is a debit call spread, this has unlimited risk this option position is for partial hedge and extra income or is the options more calculating max loss max gain or profit loss from a transaction?
Aug 7, 2008 9:30 pm

I'd actually suggest that you take some practice tests from another provider.

Aug 7, 2008 9:34 pm

I got one from kaplan i am going to take it tomorrow to see if i am recognizing recurring questions or something of the sort, I am figuring if i score above 80 on the kaplan one I should be fine

Aug 7, 2008 9:34 pm

I took the test today.

There were a lot of options questions.  Most were the max gain, max loss, breakeven, but there were also questions about identifying a particular type of spread from 4 different options choices. 
There were a couple of questions regarding options strategies:  "If the investor wanted to increase income which of the following choices should the investor take".  Or if the investor expected the price of a stock to remain stable which option strategy should he take (Rather than the choices being Write a straddle, you have to select to choice that represents writing a straddle)
Good Luck on Tuesday!
Aug 8, 2008 12:42 am

I took it last week. Most option questions were pretty straightforward - "to protect against loss, he should... a) Buy a call b) Buy a put", that sort of thing.

If you have your mind around them, you should have no problem.
Aug 8, 2008 9:12 am

I have always had a hard time keeping options straight.  Anything out there that puts it in a simple light?  Any places on the web that have practice questions?  I'm just looking for a feel before I get into the actual program for studying.  I understand the basics, but I begin to get confused with straddles and spreads.

Aug 8, 2008 12:28 pm

I did peruse the S7 for Dummies book just to get some insight into the exam, and I noticed there is a whole section of the book devoted to understanding the type of question Ice posed.  I read through that and it has some tips on handling those questions.  By the time I was done, I could just logically eliminate two answers for a 50% chance.  It could be a great reference if you're still studying.  Anyways, back on topic, good luck on the S7.  Take a bunch of practice tests to make sure you're familiar with the format.  Best of luck to you.

Aug 8, 2008 2:25 pm

LOL. On options I actually put in my notes to remember, "Red Rover Red Rover CALL your stock right over"(meaning, I want it), and "Hot PUTato (meaning, I don't want it). I take full and total credit for the lameness of those examples, but it finally unscrewed my head about options.

Also, the seller is always telling the buyer, "Bring it on." The seller doesn't think the option will ever be exercised.
Aug 8, 2008 2:27 pm

Also, if I remember, you need to be able to identify a straddle or a spread, but I don't remember very many break-even/max gain/ max loss questions.

The S7 was very straightforward. They're not trying to trick you or parse words. It really is an exam designed to find out if you know it or not.
Aug 8, 2008 3:36 pm

LOL!  That is a great way to remember that.  I'll give you the credit that is due with those two.  Much appreciated.  I took an investing class at the local college and we had some pretty gruesome option questions.  Sounds like the S7 was a bit easier than my professor in terms of option problems.  Thanks for the quick memorizers!

Aug 8, 2008 3:47 pm

Learn the options chart.

Memorize it.
Practice writing it out.
For the exam - you get scratch paper.  From memory, copy out the options chart and refer to it during your exam.
You can't bring in notes to your exam, but you can jot down anything you want from memory.
I did the same thing with the bond "fulcrum" and margin info.
Funny how I never needed it or used it since.
FYI - I was laughing my way through the series 7.  I passed with an 80% and it took just over 2 hours for me.
Aug 8, 2008 4:05 pm

I heard this one the other day. Dead Wifes Can't Nag: Debits Widen, Credits Narrow

Aug 8, 2008 4:21 pm

Learn the options chart.

It's been almost 4 years since I've had to use it, but I'll try to explain it the best way I can.
Draw a 4 quadrant square on your paper.
Top Left side:  Calls                     Top Right side:  Puts
Bottom Left side:  Puts                Bottom Right side:  Calls
Determine which strategies are "bullish" and which are "bearish".
Along the dividing lines of your quadrant on the outside edges:  identify your combos, spreads and straddles.
Within the grid (vertically):  identify your strike price and your break even points.
 - Also identify where you're "in the money" and where you're "out of the money".
That's the basics that I vaguely remember after 4 years (with a little help from Investopedia with some of the terminology).
If you bought your materials from STC, they may have something like that to send you (that's the provider I used for the Series 7).
I learned this in my Series 7 class as well as the Series 7 videos/DVDs I had acquired from STC when I was doing my studies.
Aug 11, 2008 9:20 am

Thanks for the clarification.

Aug 13, 2008 12:30 am

So how did you do? We're eager to hear!

Aug 13, 2008 12:35 am

So how did you do? We're eager to hear!

We are?
Aug 13, 2008 4:07 pm

85... blew it away.. guess i shouldnt have studied so hard.. i only needed a 70

Aug 13, 2008 4:08 pm


Aug 13, 2008 4:26 pm

85... blew it away.. guess i shouldnt have studied so hard.. i only needed a 70

LOL.  I'll be sure to study.  Better overstudying than under.   Congrats

Aug 13, 2008 4:32 pm

Congrats! One more brave soul enters the battlefield.....