Skip to content
finpins be finlightened logo

FinPins

be finlightened

  • Home
    • FREE Personal Finance Course
    • Home
    • Promotions
    • Financial Literacy Quiz With Answers [2023] – Super Easy?
    • About Us
    • Newsletter
  • Invest
    • Invest In Bitcoin?
    • How and Where to Start Investing?
    • Which is the Best Investment App?
    • How To Buy Your First Stock
    • Stock Basics
    • Stock Order Types
    • What is ETF?
    • ETF vs Stock
    • ETF vs Mutual Fund
    • Alternative Investing
    • Fractional Shares
    • Dividends Explained
    • Inflation vs Investing
    • M1: Create Portfolio
    • How To Invest $20?
  • Debt
    • Game of Loans: Is All Debt Bad?
    • Mortgage: Affording, Investing, Paying Off
    • My Loan Payoff Story
    • Is MBA Worth It?
  • Financial Calculators
    • NPV Calculator
    • IRR Calculator
    • Student Loan Payoff Calculator
    • Mortgage Payoff Calculator
    • CAGR Calculator
    • Reverse CAGR Calculator
    • SIP Calculator
    • Future Value of Annuity Calculator
    • Amortization Calculator
  • BLOG
    • See NEWEST Posts
    • Web Stories
    • Stock Market Today
    • FOMC Meetings & Fed Funds Rate
    • 19 Best Personal Finance Reddit Communities You Should Join
    • How to Build a Budget
    • 27 Best Personal Finance Books To Read
    • What is Metaverse? 18 Good Metaverse Stocks to Buy
    • DiversyFund vs Fundrise: Invest Affordable Amounts (as low as $500) in Real Estate
    • Cash Flow and Budgeting: 1 Easy and Powerful Budgeting Strategy
    • MFAANG – Tech Stocks
    • 9 Powerful Ideas on How To Make Money Online For Beginners
    • Invest In Apple Or Buy iPhone?
    • Retirement Strategy: 401(k) Mistakes to Avoid
    • Roth IRA vs 401(k): How to Choose
  • Stock Options
    • Stock Options: 5-Minute Guide
    • Call vs Put Options
    • Options Trading Levels
    • Options Greeks Cheat Sheet
    • Options Trading Quiz For Beginners
    • Straddle vs Strangle Options
    • Choose Your Options Strategy Wisely
    • Options Trading Cheat Sheet
  • Credit Cards
    • How to Use Credit Card Responsibly
    • How To Read A Credit Card Statement
    • FICO Credit Score Explained
    • Credit Card Mistakes To Avoid
    • 12 Best Credit Cards For Millennials
    • 10 Best Credit Cards For Ad Spend
    • 12 Best Credit Cards For Farmers
    • 11 Best Credit Cards For Digital Nomads
    • 10 Best Credit Repair Books
    • 9 Best Business Credit Cards for Construction Companies
    • 8 Best Credit Cards for Nurses
    • 4 Best Credit Cards For Nannies
    • 9 Best Credit Cards for Wedding Expenses
    • 10 Best Credit Cards For Consultants
    • 6 Best Credit Cards for Traveling Consultants
    • How Do Business Credit Cards Work?
    • 8 Best Credit Cards For Teachers
    • 8 Best Credit Cards For Golf Lovers
  • Tech
    • How To Use ChatGPT
    • ChatGPT Examples
    • How To Make Money With ChatGPT
    • 12 Best AI Story Generators
    • 12 Best AI Video Generators From Text
    • 8 Best AI Video Enhancers And Editors
    • 20 Best AI Art Generators From Text
    • 40 Best AI Writing Tools
    • Digital Tools For Business
  • Toggle search form
Options Trading Quiz

Options Trading Quiz For Beginners [2023]

Posted on By

This article has been reviewed by Sumeet Sinha, MBA (Emory University Goizueta Business School). Should you have any inquiries, please do not hesitate to contact at sumeet@finlightened.com.

Want to test your knowledge in stock options trading? Take this quick options trading quiz. It has just 15 questions. Can you score a perfect 15 here? Give it a try now!

OPTIONS TRADING QUIZ

#1. Option's Implied Volatility can be used to determine an expected price range of a stock with what probability?

#2. What is the breakeven price of a put option, on a share trading at $99, with strike price $95 that costs (premium) $3 per share?

#3. When do we buy a put option?

#4. Which of the following have intrinsic value?

#5. When do we buy a Call Option?

#6. In American Style options, you can exercise option ONLY on the last trading day before expiration. (T/F))

#7. Which of these trades is 'bullish' in nature?

#8. What is true about potential profits on stock options?

#9. What is a benefit of selling a put option?

#10. What is the advantage of the Options Wheeling Strategy?

#11. What is one main benefit of stock options?

#12. An option chain has the same:

#13. What is the relationship between Option Premium and Time Remaining on Contract?

#14. What is the breakeven price (or breakeven point) of a call option?

#15. If you write a covered call option, on a stock trading at $120 per share, with strike price $135 and collect $5 premium, what happens on option expiration date? Choose the INCORRECT option.

Finish

Results

options trading quiz perfect score Congratulations! You’ve done very well on the quiz.

Good attempt, but there’s some more work to do.

Try the quiz again. Aim for a perfect score.

Share your score!
Tweet your score!

Some Resources to help you get better at the Options Trading Quiz

Blog Posts: For Beginner Level

Call vs Put Options: Easy and Informative 5 Minute Guide

How To Buy A Long Call Option on 100 Shares: Step-by-Step Guide

How To Buy A Long Put Option on 100 Shares: Step-by-Step Guide

Options Greeks Cheat Sheet: 4 Greeks – Delta, Gamma, Theta, Vega

Options Trading Levels: 4 Approval Levels For Easy Risk Management

Blog Posts: For Intermediate Level

Bear Call Spread vs Bull Call Spread: Easy 5 Point Comparison

Bear Put Spread vs Bull Put Spread: Easy 5 Point Comparison

Choose Your Options Strategy Wisely: Comprehensive List of 25 Strategies

Straddle vs Strangle Options: Explained In 5 Minutes

OPTIONS TRADING QUIZ QUESTIONS (PRINTABLE)

1. What is a benefit of selling a put option?

  • Earn premium on cash 
  • You don’t require money to place the trade 
  • Buy stock at the lowest possible price during flash crashes

2. Which of the following have intrinsic value?

  • Call options with strike price less than the stock (share) price
  • Put options with strike price less than the stock (share) price
  • Both call and put options with strike price higher than the stock (share) price
  • All FAANG (Facebook, Apple, Amazon, Netflix, Google) stock options

3. What is the advantage of the Options Wheeling Strategy?

  • Can collect premiums on a regular basis
  • This is a risk-free strategy
  • By using this strategy, stocks keep going up.

4. An option chain has the same:

  • Underlying Stock and Expiration Date
  • Gamma and Theta
  • Strike Price and Premium
  • Premium and Delta

5. What is one main benefit of stock options?

  • Diversification
  • Low Volatility
  • Leverage

6. In American Style options, you can exercise option ONLY on the last trading day before expiration. (T/F))

  • FALSE 
  • TRUE

7. Option’s Implied Volatility can be used to determine an expected price range of a stock with what probability?

  • 98%
  • 95%
  • 48%
  • 68%

8. When do we buy a Call Option?

  • When we expect the stock price to go down
  • When we expect the stock price to go up
  • When we expect the stock price to trade sideways

9. What is the breakeven price of a put option, on a share trading at $99, with strike price $95 that costs (premium) $3 per share?

  • $92
  • $99
  • $96
  • $98

10. Which of these trades is ‘bullish’ in nature?

  • Buying a put option
  • Selling a cash-secured put option
  • Staying out of the stock market and saving money in a savings account
  • Selling a covered call option

11. What is true about potential profits on stock options?

  • In call and put options, the potential profit is limited to ‘stock price + strike price’
  • In call option, the potential profit is unlimited. In put option, the potential profit is limited.
  • In call option, the potential profit is unlimited. In put option, the potential profit is unlimited.
  • In call option, the potential profit is limited. In put option, the potential profit is unlimited.

12. If you write a covered call option, on a stock trading at $120 per share, with strike price $135 and collect $5 premium, what happens on option expiration date? Choose the INCORRECT option.

  • Option will be profitable if stock price is $145 at expiration
  • Option will be profitable if stock price is $135 at expiration
  • Option will be profitable if stock price is $125 at expiration
  • Option will be profitable if stock price is $138 at expiration

13. What is the breakeven price (or breakeven point) of a call option?

  • Stock Price + Premium of Call Option
  • Strike Price + Premium of Call Option
  • Strike Price – Premium of Call Option
  • Strike Price

14. When do we buy a put option?

  • When we expect the stock price to go up
  • When we expect the stock price to go down
  • When we expect the stock price to trade sideways

15. What is the relationship between Option Premium and Time Remaining on Contract?

  • For call option, premium increases with more days to expiration on contract. For put option, premium is not impacted by days to expiration on contract.
  • For both call and put options, premium increases with more days to expiration on contract.
  • For put option, premium decreases with more days to expiration in contract. For call option, premium increases with more days to expiration in contract.
  • Time remaining on contract (Days to expiration) does not impact premium.

OPTIONS TRADING QUIZ QUESTIONS IN PICS

When do we buy a put option? Options Trading Quiz For Beginners
Options Trading Quiz For Beginners
Options trading Quiz - What is one main benefit of stock options? Options Trading Quiz For Beginners
What is the relationship between Option Premium and Time Remaining on Contract? Options Trading Quiz For Beginners
What is the breakeven price (or breakeven point) of a call option? Options Trading Quiz For Beginners
Options Trading Quiz For Beginners
Which of these trades is 'bullish' in nature? Options Trading Quiz For Beginners
Options Trading Quiz For Beginners
What is true about potential profits on stock options? Options Trading Quiz For Beginners
Options Trading Quiz For Beginners
What is the breakeven price of a put option, on a share trading at $99, with strike price $95 that costs (premium) $3 per share? Options Trading Quiz For Beginners
Options Trading Quiz For Beginners
Options Trading Quiz For Beginners
Which of the following have intrinsic value? Options Trading Quiz For Beginners
Option's Implied Volatility can be used to determine an expected price range of a stock with what probability? Options Trading Quiz For Beginners

SOLUTIONS TO OPTIONS TRADING QUIZ

Do not use the solutions before you attempt the quiz. These solutions to options trading quiz are provided for reference only, after you have fairly attempted all questions.

1. What is a benefit of selling a put option?

Earn premium on cash

2. Which of the following have intrinsic value?

Call options with strike price less than the stock (share) price

3. What is the advantage of the Options Wheeling Strategy?

Can collect premiums on a regular basis

4. An option chain has the same:

Underlying Stock and Expiration Date


Bestseller Personal Finance Books

SaleBestseller No. 1 The Infographic Guide to Personal Finance: A Visual Reference for Everything You Need to Know
The Infographic Guide to Personal Finance: A...
Amazon Prime
$10.99
Buy on Amazon
Bestseller No. 2 Personal Finance QuickStart Guide: The Simplified Beginner’s Guide to Eliminating Financial Stress, Building Wealth, and Achieving Financial Freedom (QuickStart Guides™ - Finance)
Personal Finance QuickStart Guide: The Simplified...
$9.99
Buy on Amazon
Bestseller No. 3 Legend Planner Budget Book - Personal Finance Planner with 3 Cash Envelopes & Stickers - Non-Dated Monthly Journal for Budgeting, Saving Money, Debt Payoff & Bill Organizer - A5 Size, Viridian Green
Legend Planner Budget Book - Personal Finance...
Amazon Prime
$14.99
Buy on Amazon
SaleBestseller No. 4 How to Adult: Personal Finance for the Real World
How to Adult: Personal Finance for the Real World
Amazon Prime
$12.59
Buy on Amazon
SaleBestseller No. 5 Personal Finance For Dummies
Personal Finance For Dummies
Amazon Prime
$13.79
Buy on Amazon
SaleBestseller No. 6 The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness
The Total Money Makeover: Classic Edition: A...
Amazon Prime
$9.66
Buy on Amazon

5. What is one main benefit of stock options?

Leverage

6. In American Style options, you can exercise option ONLY on the last trading day before expiration. (T/F))

FALSE

7. Option’s Implied Volatility can be used to determine an expected price range of a stock with what probability?

68%

8. When do we buy a Call Option?

When we expect the stock price to go up

9. What is the breakeven price of a put option, on a share trading at $99, with strike price $95 that costs (premium) $3 per share?

$92

10. Which of these trades is ‘bullish’ in nature?

Selling a cash-secured put option

11. What is true about potential profits on stock options?

In call option, the potential profit is unlimited. In put option, the potential profit is limited.

12. If you write a covered call option, on a stock trading at $120 per share, with strike price $135 and collect $5 premium, what happens on option expiration date? Choose the INCORRECT option.

Option will be profitable if stock price is $145 at expiration

13. What is the breakeven price (or breakeven point) of a call option?

Strike Price + Premium of Call Option

14. When do we buy a put option?

When we expect the stock price to go down

15. What is the relationship between Option Premium and Time Remaining on Contract?

For both call and put options, premium increases with more days to expiration on contract.

Options Trading Quiz

sumeet sinha as seen on washington post us news yahoo finance

Read more:

Stocks, ETFs, Mutual Funds, Bitcoins
Alternative Investing, Dividends, Stock Options, Credit Cards

Home | BLOG | WebStories

Useful Tools:

Student Loan Payoff Calculator | Mortgage Payoff Calculator

CAGR Calculator | Reverse CAGR Calculator | NPV Calculator | IRR Calculator

Our Financial Calculator Apps

download loan early payoff calculator and simulator
download loan early payoff calculator app on ios
download loan early payoff calculator app on android
download cagr calculator app
download cagr calculator app on ios
download cagr calculator app on android
download reverse cagr calculator app
download reverse cagr calculator app on ios
download reverse cagr calculator app on android
download irr calculator app
download npv calculator app on ios
download npv calculator app
download npv calculator app on ios


Stock Options

Post navigation

Previous Post: 8 Steps To Financial Independence | Financial Freedom | Best Books List
Next Post: Options Trading Cheat Sheet – Free PDF Download [2023]

Related Posts

  • STOCK OPTIONS TRADING
    Stock Options Trading For Beginners: Easy 5-Minute Guide Stock Options
  • BEAR CALL SPREAD VS BULL CALL SPREAD COVER
    Bear Call Spread vs Bull Call Spread: Easy 5 Point Comparison Stock Options
  • BEAR PUT SPREAD VS BULL PUT SPREAD
    Bear Put Spread vs Bull Put Spread: Easy 5 Point Comparison Stock Options
  • HOW TO BUY A LONG CALL OPTION
    How To Buy A Long Call Option on 100 Shares: Step-by-Step Guide Stock Options
  • CALL VS PUT OPTIONS
    Call vs Put Options: Easy and Informative 5 Minute Guide Stock Options
  • OPTIONS TRADING STRATEGY
    Choose Your Options Strategy Wisely: Comprehensive List of 25+ Strategies Stock Options

Recent Posts

  • Unique Insurance Types: From Private Jets to Hobby Drones
  • How To Invest In Pokemon Cards + 5 Highly Valuable Pokemon Cards
  • How To Invest In Baseball Cards 101: Easy Guide
  • Empowerment through Education: Loans as Lifelines for Financial Stability Across Generations
  • How To Invest In Basketball Cards: 5 Important Investment Tips
  • 9 Best Time-Tracking Software for Virtual Assistants
  • FOMC Meetings & Fed Funds Rate – Easy Guide [2023]
  • Apple Vision Pro – Is It Worth The Hype and The $3,499 Price Tag?
  • CAGR vs IRR: Comparison of 2 Important Metrics For Return on Investment
  • NPV vs IRR – Comparison of 2 Important Financial Metrics
  • BUSINESS CASH FLOW LOANS
    8 Best Business Cash Flow Loans In The United States [2023] Cash Flow
  • BEST AI TOOLS FOR BUSINESS
    10 Best AI Tools for Business General
  • 401K VS IRA
    How to Decide – 401(k) vs Roth IRA vs Traditional IRA Invest
  • GAMESTONK A SHORT STORY ON GAMESTOP
    GameStonk – A Short Story on GameStop | Reddit Takes On 2 Powerful Hedge Funds Invest
  • HOW TO USE CHATGPT BY OPENAI
    How To Use ChatGPT: I Asked This Powerful AI Tool 8 Questions General
  • BEST CREDIT CARDS FOR NANNIES
    4 Best Credit Cards For Nannies [2023] Credit Cards
  • BEST CREDIT CARDS FOR GOLF LOVERS
    8 Best Credit Cards For Golf Lovers [2023] Credit Cards
  • Scaffolding Insurance
    10 Best Scaffolding Insurance Companies Risk Management
  • 20 Best AI Art Generators From Text – Text To Image AI Tools [2023] General
  • HOW META MAKES MONEY
    How Meta (or Facebook) makes Money: 20+ Revenue Streams General

Reach Out To Us

contact@finlightened.com

With ❤️ From Luxembourg

Sumeet Sinha

Disclosure & Disclaimer

We participate in Affiliate Programs (Amazon and others). We may earn a commission if you use links to open an account or make an investment or purchase.


All content on the website is for information purposes only, not investment advice. Please do your own research and analysis before investing.

  • Sitemap
  • Post Sitemap
  • Page Sitemap
  • WebStory Sitemap

 

Recent Posts

  • Unique Insurance Types: From Private Jets to Hobby Drones
  • How To Invest In Pokemon Cards + 5 Highly Valuable Pokemon Cards
  • How To Invest In Baseball Cards 101: Easy Guide
  • Empowerment through Education: Loans as Lifelines for Financial Stability Across Generations
  • How To Invest In Basketball Cards: 5 Important Investment Tips
  • 9 Best Time-Tracking Software for Virtual Assistants
  • FOMC Meetings & Fed Funds Rate – Easy Guide [2023]
  • Apple Vision Pro – Is It Worth The Hype and The $3,499 Price Tag?
  • CAGR vs IRR: Comparison of 2 Important Metrics For Return on Investment
  • NPV vs IRR – Comparison of 2 Important Financial Metrics
  • 10 Best AI Tools for Business
  • AI In Finance 101: Pros, Cons, and Caveats Of The Powerful Tech
  • 11 Best Project Management Software For Solopreneurs and Small Teams
  • 5 Best Gold IRA Providers in the USA
  • 6 Best POS System Providers in the USA

Navigation

  • Home
  • About Us
  • Privacy Policy
  • Do Not Sell My Data
  • User Login
  • User Dashboard
  • Support
  • Free Online Financial Calculators
  • BLOG
  • Financial Literacy Quiz
  • Web Stories

Categories

  • Cash Flow
  • Credit Cards
  • Debt Management
  • General
  • Invest
  • Mini Blogs
  • Risk Management
  • Stock Market Today
  • Stock Options
  • Tech

Copyright © 2023 FinPins.com |

Powered by PressBook News Dark theme