Series 4 study plan
Series 4 · Give each week a clear focus.
8 weeks · About 7 hours per week
Supervise General Options Trading
Outline the supervisory approval path for discretionary and non-discretionary options orders
Distinguish position limits from exercise limits and compute aggregate limits across related accounts
Identify reportable position thresholds and the procedures for filing position reports
Explain how uncovered writing, spread, and straddle positions are treated for limit purposes
Your checkpoint
Build a one-page limits and reporting cheat sheet from memory, then correct it against source material and log every correction
Supervise General Options Trading & Supervise Associated Persons and Personnel Management Activities
Apply supervision standards to order entry, cancellation, and error-account handling
Describe the review process for unusual or high-volume trading activity in an account
List the criteria used to evaluate a registered representative's options-qualification status
Design a training and escalation ladder for representatives who exceed trading authority
Your checkpoint
Write a 400-word internal memo describing the escalation steps a principal takes when a representative exceeds approved options authority
Supervise Associated Persons and Personnel Management Activities & Supervise Options Account Activities
Draft the elements of a written supervisory procedure for branch options activity
Explain delegation of supervisory duties and the limits on a principal's span of control
Respond to employee conduct scenarios involving outside business activities and unauthorized trading
Outline recordkeeping obligations tied to personnel and supervision files
Your checkpoint
Produce a written supervisory procedure outline covering branch-level options oversight with at least eight required elements
Supervise Options Account Activities
Summarize the account review triggers for margin calls, deficits, and concentrated positions
Distinguish when a principal must approve an account for options versus when a representative may act
Identify documentation requirements for customer complaints and trade corrections
Explain how to handle exercise and assignment activity in client accounts
Your checkpoint
Pass a 40-question cumulative quiz covering domains 3, 6, and 2 with 80% or better
Supervise the Opening of New Options Accounts & Implement Practices and Adhere to Regulatory Requirements
Sequence the steps to open an options account from application through written approval
Identify the suitability information required and the documents that must be delivered before the first trade
Distinguish customer signature requirements from principal approval requirements
Match core regulatory rules and their recordkeeping retention periods to the account-opening process
Your checkpoint
Complete a blank account-opening checklist that names every required disclosure, signature, and approval step in the correct order
Supervise Options Communications & Implement Practices and Adhere to Regulatory Requirements
Evaluate retail communications and correspondence for required approvals and prohibited content
Apply the principal review standard to options-related advertising and seminar materials
Identify the retention and review obligations for correspondence and electronic communications
Recognize red flags in communications that trigger heightened supervision
Your checkpoint
Review four sample marketing pieces and score them against a self-built approval checklist, documenting each defect found
Supervise General Options Trading & Supervise Options Account Activities
Integrate position-limit, margin, and account-approval rules in multi-account scenarios
Work through calculation-based questions under timed conditions without reference material
Diagnose recurring error patterns from prior quizzes and re-drill them
Explain orally, without notes, how a principal reviews a large uncovered call position
Your checkpoint
Complete two full-length timed practice exams and produce an error log categorized by domain
Supervise the Opening of New Options Accounts & Supervise Options Communications & Implement Practices and Adhere to Regulatory Requirements & Supervise Associated Persons and Personnel Management Activities
Re-drill every missed item from the error log until repeat accuracy exceeds 90%
State the key supervisory obligations for each of the six domains from memory
Practice concise written answers for scenario-based supervisory questions
Confirm exam-day logistics and timing strategy
Your checkpoint
Score 85% or better on a final full-length practice exam and submit a one-page summary of the three weakest remaining areas
Milestones
Week 2: Can state from memory the difference between position and exercise limits and apply both to a two-account scenario without notes
Week 4: Cumulative quiz across domains 3, 6, and 2 scored at or above 80%
Week 6: Account-opening checklist and communications checklist both complete and internally consistent, with no missing required disclosure
Week 8: Final practice exam at 85% or better, and every item on the error log re-drilled to at least 90% repeat accuracy