Series 4 - Registered Options Principal Exam (OP)

The Series 4 exam—the Registered Options Principal Qualification Examination (OP)—assesses the competency of an entry-level options principal candidate to perform his or her job as a registered options principal.

The exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of a registered options principal, including the rules and statutory provisions applicable to the supervisory management of a firm’s options personnel, accounts and trading, as well as exchange rules and regulations applicable to the trading of options contracts.

The exam consists of 125 scored questions and an additional 10 unscored pretest questions. Candidates are given three hours and 15 minutes to complete the exam. The passing score is 72 percent.

Please see NASD Rule 1022(f) Registered Options and Security Futures Principal for more information.

Content Outline


The Series 4 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. It includes sample questions to acquaint a candidate with the types of multiple-choice questions on the exam.

The outline is comprised of the six main job functions of a Series 4 principal:

  • Section 1 — Supervise the Opening of New Options Accounts
  • Section 2 — Supervise Options Account Activities
  • Section 3 — Supervise General Options Trading
  • Section 4 — Supervise Options Communications
  • Section 5 — Implement Practices and Adhere to Regulatory Requirements
  • Section 6 — Supervise Associated Persons and Personnel Management Activities

Download:
Series 4 Content Outline

Eligibility


The Series 4 has a prerequisite exam requirement. Candidates must pass one of the following exams to hold the registration:

  • Series 7
  • Series 17
  • Series 37
  • Series 38
  • Series 62 (with the Series 42)

Please see Register a New Candidate for more information on the registration process.

Permitted Activities


Covered supervisory activities and products include regulatory compliance over trading, market making, underwriting and advertising of:

  • Equity options
  • Foreign currency options
  • Interest rate options
  • Index options
  • Options on government and mortgage-backed securities

Taking the Exam


The table below lists the allocation of exam questions for each main job function of a registered options principal.

Section Number of Questions
Section 1 – Supervise the Opening of New Options Accounts 21
Section 2 – Supervise Options Account Activities 25
Section 3 – Supervise General Options Trading 30
Section 4 – Supervise Options Communications 9
Section 5 – Implement Practices and Adhere to Regulatory Requirements 12
Section 6 –Supervise Associated Persons and Personnel Management Activities 28
TOTAL 125

See On the Day of Your Exam for more information.

Using Reference Materials


The test administrator will provide whiteboard/dry erase marker and basic electronic calculators to the candidates, which must be returned to the test center administrator at the end of the testing session. Some test questions involve calculations. Only the provided calculators may be used during the examination.

The examination may contain questions that require the use of exhibits (e.g., charts, graphs, tables). If so, the questions will indicate when to refer to an exhibit.

Candidates are not permitted to bring any reference materials to testing sessions. Severe penalties are imposed on candidates who cheat or attempt to cheat on FINRA administered examinations.

To learn more about logistics and protocols for your exam day, please see On The Day of Your Exam.