Master The Options Marketplace
The OLC focuses on the rules and regulations associated with the options marketplace including those of the IIROC, the Montreal Exchange and the CDCC. Students gain a strong conceptual understanding of options and the mechanics of listed options trading.
Learn About:
- Determining client suitability
- Strategies based on market outlook and risk tolerance level
- Entering orders
- Executing orders on exchanges
- Payment for options, exercise assignment, or option expiry
- Tax implications of listed options trading
Learning Experience
CSI's online learning system helps you meet your study goals. You'll benefit from:
- Learning objectives that keep you focused
- Online post-chapter review questions to assess your progress
- Course updates to ensure you’re learning the most current and up-to-date practical material in your studies
- Assistance from CSI's academic support specialists
What's New
- updated Chapter 8 on the Canadian tax aspects of options trading with an updated list of eligible options strategies and registered accounts
- updated the Workbook section accordingly
- updated online review questions
- added online flip cards learning activities to Chapters 1,2 and 3
What you'll learn
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Topics covered in this chapter are:
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Long Call
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Married Put
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Covered Call (also known as Covered Write)
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Put Writing
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Benchmark Indexes for Income-Producing Option Strategies
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A Brief Review of Spreads, Straddles and Combinations
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Bull Call Spread
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Bull Put Spread
Topics covered in this chapter are:
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Long Put
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Protected Short Sale
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Covered Put Sale
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Call Writing
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Bear Put Spread
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Bear Call Spread
Topics covered in this chapter are:
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An Introduction to Volatility
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Importance of Volatility to Options Trading
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Short Volatility Strategies
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Long Volatility Strategies
Topics covered in this chapter are:
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Options Regulation
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Individual Registration Categories
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Registrant Code of Ethics
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Registrant Standards of Conduct
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Trading and Sales Practices
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Regulations Covering Registrants Employed by IIROC Member Firms or Approved Participants of the Bourse
Topics covered in this chapter are:
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Completion and Approval of Option Account Application Forms
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Significant Items of Information on the Option Account Application Form
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Unanswered Questions on the Option Account Application Form
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Responsibility for Final Acceptance of an Option Account
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Completion of the Options Trading Agreement Prior to Option Transactions
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Risk Disclosure Statement
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Applying a Suitability Concept to Option Recommendations
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Managed Accounts and Simple Discretionary Accounts
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Transfer of Option Accounts from One Member Firm to Another
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Commissions
Topics covered in this chapter are:
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Basic Margin Terms
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Factors Affecting the Amount of Margin Required
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IIROC and Bourse de Montréal Minimum Margin Requirements for Equity and index Option Strategies
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Meeting Margin Calls
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Capital Requirements for Firm and Market Maker Accounts
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Member Firm Clearing Deposit Requirements for positions at the Clearing Corporation
Topics covered in this chapter are:
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Essential Information Required for All Types of Orders
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Order Ticket Information Unique to Options
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A Generic Order Entry Screen
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Types of Buy and Sell Orders
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Types of Contingent Orders
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Implied Orders and the Bourse De Montréal’s Implied Pricing Algorithm
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The Bourse de Montréal’s User-Defined Strategies (UDS) Functionality
Topics covered in this chapter are:
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Professional versus Non-Professional Option Traders
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Federal Tax Consequences for Non-Professional Traders
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Federal Tax Consequences for Professional Traders
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Tax Consequences for LEAPS® Investors
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Allowable Use of Exchange-Traded Options in RRSPs, RRIFs and RESPs
Topics covered in this chapter are:
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Opening Corporate Option Accounts
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Opening Option Accounts for Acceptable Institutions
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Know Your Client Rule
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Permissible Option Transactions for Pension Plans, Insurance Companies and Trust Companies in Canada
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Canadian Mutual Funds
Topics covered in this chapter are:
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What is a Clearing Corporation?
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Canadian Derivatives Clearing Corporation
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Options Clearing Corporation
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Functions of a Clearing Corporation
Topics covered in this chapter are:
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What is an Options Exchange?
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Providing a Trading Forum
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Adding and Deleting Option Classes
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Adding and Deleting Option Series
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Expiration Cycles on the Bourse
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Setting Reporting Levels, Position Limits and Exercise Limits
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Setting Capital and Margin Rules
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Developing and Administrating Rules Governing the Marketplace and Approved Participants Dealing in Options
Topics covered in this chapter are:
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The Bourse de Montréal Inc.
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The U.S. Exchanges
Topics covered in this chapter are:
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Obligations of Market Makers
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How Market Makers Reduce or Eliminate Their Exposure
Topics covered in this chapter are:
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Adjustments for Stock Splits
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Adjustments for Stock Dividends
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Cash Dividends
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Impact of Dividends on Option Premiums
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Rights Issues
Topics covered in this chapter are:
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Unique Characteristics and Risks of Index Options
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Key Index Option Contracts
Topics covered in this chapter are:
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Exchange Rate Quoting Convention
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Selecting the Right Option
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Unique Characteristics and Risks of North American Listed Currency Options
Approximate Hours of Study** | |
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Hours of Study | 50 - 60 hours |
** In order to provide some guidance to course participants as to the length of time it will take to be sufficiently prepared to write the final examination, CSI has prepared this estimate of the number of hours an average participant could possibly expect to spend studying for a course. Please note that these are only recommended hours of study developed based on research and our course content, however, this does not mean that some students with exceptional backgrounds would not take less time than recommended or that students with no background at all in finance or economics would not take longer than the maximum.
EXAM WEIGHTINGS (weightings are approximate) |
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A Review of the Risk and Reward Profiles of Common Option Strategies | 26% |
Opening and Maintaining Option Accounts | 40% |
The Role of Clearing Corporations and Exchanges in Listed Options Trading | 20% |
Contract Adjustments and Special Considerations and Risks of Non-Equity Options | 14% |
ENROLMENT PERIOD | |
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Enrolment Period | 1 year† |
COURSE COMPLETION NOTICE AND WALL CERTIFICATE | |
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On successful completion of this course you will be able to download a Notice of Course Completion available through your student profile. This will remain on your profile as formal confirmation of course completion. CSI will mail you a wall certificate within 4 - 6 weeks of course completion. Frames to display your certificate are available. Please ensure that your First and Last Name on your profile match your First and Last Name on your Government Issued Photo identification - this will ensure you receive an accurate certificate. CSI will be pleased to issue an Honors Certificate to all student who obtain a final course mark of 85% or higher. |
* The first attempt is included in the course enrolment fee. Further attempts incur fees.
†Please note: Access to your online materials will close 2 weeks after successful course completion or course expiry (whichever comes first). This course can be extended by 1 year provided you have not exceeded the attempts allowed for each exam. You can view CSI extension fees here . Your enrolment period can only be extended one time.
Continuing Education (CE) Credits
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