SEC CO/AP study plan

Define every term in the Options Disclosure Documents (ODD) characteristics-and-risks section in your own words, including exercise styles, settlement, and assignment mechanics.

Compute breakeven, maximum gain, and maximum loss for long calls, long puts, short calls, and short puts from strike and premium alone, without notes.

Reconstruct the payoff diagram for each of the four basic positions from memory and label the axes correctly.

Explain how strike price, expiration, and underlying price interact to determine intrinsic and time value, using three worked numeric examples.

Distinguish American versus European exercise and identify which equity, index, and ETF options use each style.

Calculate delta, gamma, theta, vega, and rho effects directionally for a given position and explain each Greek in one sentence without jargon.

Compute time value decay across a series of expirations for an at-the-money option and describe the acceleration pattern near expiration.

Apply put-call parity to identify arbitrage inconsistencies in three constructed price sets.

Explain how implied volatility differs from historical volatility and how an earnings event inflates implied volatility and compresses it after the event.

Identify the conditions that produce volatility skew and term structure inversions in equity index options.

Build the risk/reward profile for covered calls, protective puts, and collars, and state the market view each expresses.

Diagram bull call spreads, bear put spreads, and calendar spreads, and compute breakeven for each.

Differentiate straddles, strangles, and butterfly spreads by cost, volatility exposure, and profit zone.

Identify when to roll, close, or let expire a position based on assignment risk, dividend dates, and remaining time value.

Diagnose a losing position and select a defensible adjustment (roll up, roll out, close, or convert) with a stated rationale.

Apply position and exercise limits to a hypothetical account and determine whether a proposed order breaches them.

Compute initial and maintenance margin for uncovered calls, uncovered puts, and spreads using the standard Reg T formulas.

Explain the suitability obligations that attach to recommending options strategies to retail customers, including approval levels.

Describe how the options approval process classifies a customer and what each level permits.

Identify the recordkeeping and disclosure documents required at account opening for options trading.

Classify municipal bonds by issuer type, tax treatment, and revenue pledge, and distinguish general obligation from revenue bonds.

Compute tax-equivalent yield for a municipal bond across at least three tax brackets and compare to a taxable corporate alternative.

Explain the pricing relationship between coupon, yield to maturity, and price for premium and discount bonds.

Describe the call, refunding, and sinking fund features of municipal issues and their effect on yield.

Distinguish corporate bond credit ratings, seniority, and indenture covenants, including secured versus unsecured debt.

Distinguish Treasury bills, notes, bonds, and TIPS by maturity, coupon, and inflation treatment.

Compute the discount yield and bond-equivalent yield on a Treasury bill and explain why the two differ.

Describe money market instruments including commercial paper, negotiable CDs, banker's acceptances, and repurchase agreements by issuer and risk.

Explain how Treasury auctions, when-issued trading, and the secondary market function for government securities.

Differentiate structured products including principal-protected notes, reverse convertible notes, and commodity-linked notes by payoff structure and embedded risk.

Identify the risks in packaged investments such as unit investment trusts, closed-end funds, and ETFs that differ from direct ownership.

Apply the customer account rules on confirmations, statements, and settlement cycles to three scenario timelines.

Explain the regulatory recordkeeping obligations for options accounts and the retention periods that apply.

Identify the roles of the SEC, FINRA, MSRB, and OCC in regulating the securities and options markets.

Describe the conduct rules governing communications with the public and the restrictions on misleading options advertising.

Explain the anti-money-laundering and customer identification requirements that apply at account opening.

Complete two timed full-length practice exams under exam conditions and score each by domain.

Rank your three weakest domains by error count and rework every missed question to a defensible explanation.

Recompute all margin, yield, and breakeven formulas from a blank page without reference materials.

Review the strategy matrix and yield reference sheets for gaps, and rewrite any entry you cannot restate from memory.

Build a one-page formula sheet covering Greeks, parity, margin, and yield conversions for final review.