Series 4 Exam 2025: Cost, Structure & Sample Questions for Options Supervisors

Julia Kagan is a seasoned financial and consumer journalist, previously serving as senior editor for personal finance at Investopedia.

What Is the Series 4 Exam?

The Series 4 exam is a FINRA-administered licensing test that authorizes individuals to supervise options sales personnel and oversee compliance within options trading. It covers a broad range of topics including options strategies, foreign exchange options, and taxation rules. Candidates must already hold a Series 7 license before attempting the Series 4 exam.

Key Highlights

• Passing the Series 4 grants a license to supervise options sales and trading staff.
• Sponsored by FINRA, the exam tests knowledge on options trading, regulatory compliance, and ethical standards.
• Typically, candidates take the Series 4 after successfully completing the Series 6 or Series 7 exams.

Understanding the Role of Series 4

Known as the Registered Options Principal Qualification Examination (OP), the Series 4 is designed to evaluate the competence of entry-level options principals. FINRA emphasizes that the exam assesses a candidate's ability to manage a firm’s options personnel, accounts, and trading activities while adhering to relevant rules and regulations governing options contracts.

Supervisory responsibilities covered by the Series 4 include market making, underwriting, compliance oversight, and the regulation of advertising related to:

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

Series 4 Exam Structure and Content Overview

The Series 4 exam is computer-based and includes a tutorial before starting. Candidates are not permitted to use reference materials but are provided scratch paper and basic calculators to assist with calculations.

The exam consists of 125 multiple-choice questions, including 10 unscored pretest questions, divided into six key job functions:

• Supervising the Opening of New Options Accounts (21 questions)
• Supervising Options Account Activities (25 questions)
• Supervising General Options Trading (30 questions)
• Supervising Options Communications (9 questions)
• Implementing Practices and Adhering to Regulatory Requirements (12 questions)
• Supervising Associated Persons and Personnel Management Activities (28 questions)

Candidates have three hours and 25 minutes to complete the exam, and a minimum score of 72% is required to pass. There is no penalty for guessing, so answering every question is recommended. For detailed exam content, refer to FINRA's Registered Options Principal Qualification Examination (OP) Series 4 Content Outline.

Sample Series 4 Questions

Below are sample questions provided by FINRA, illustrating typical exam content. Correct answers are marked with an asterisk.

Example 1: With a broad-based index at 266, a customer writes 1 Feb 270 index call at 2.75, writes 1 Feb 260 put at 2.25, buys 1 Feb 275 call at 1.25, and buys 1 Feb 255 put at 1. What is the maximum potential profit in this position?

(A) $225

(B) $275*

(C) $500

(D) $725

Example 2: A put option is considered out-of-the-money when the market price of the underlying security is:

(A) equal to or higher than the strike price.*

(B) lower than the strike price.

(C) lower than the strike price less the premium.

(D) higher than the strike price less the premium.

Example 3: Listed equity options would not be adjusted for which of the following actions in the underlying security?

(A) A 2-for-1 stock split

(B) A 1-for-5 reverse stock split

(C) A stock dividend of 5%

(D) A cash dividend of $0.50*

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