Most brokers are licensed Series 7 and Series 65, if they wish to earn commissions and fees for managing assets. The Series 65 or Series 66 (63/65 combo) allows for fee based income. It also gives the Rep a nice "title" of Registered Investment Adviser.
One of the big advantages with the Series 65 is the exam does not require sponsorship for a brokerage firm. You can get this license BEFORE you apply for a position with a Company. That is a big advantage if you want to show some credentials on your resume.
Another Plus to having the Series 65 and becoming an Investment Adviser is you can use the license "passively". Meaning, you can work as an independent and split/share commissions with a licensed Series 7 broker. An example would be a CPA, Insurance Agent or other Professional with a Series 65 can refer clients to an outside broker and can legally split commissions on trades executed by the Series 7 Rep.
The exam is roughly half the size of the Series 7. A Series 65 course can be taken online through various formats with American Investment Training and their affiliates or you can study via hard cover books and software.
American Investment Training recommends 4-6 weeks of study and passing the practice exams that are given.
Like all FINRA licensing exams, if the test is failed the candidate or trainee must wait 30 days before re-taking the test. One of the formats is an online PASS GUARANTEE. The student is refunded if they fail the test. Practice exams are VERY accurate.
View the PASS GUARANTEE SERIES 65 ONLINE COURSE HERE
Where to take the Series 65 Test
All Broker - Adviser exams can be taken nationwide and globally daily at hundreds of testing centers. It's recommended that you study for the exam first before you schedule an exam date.
Books, Software and Classes are available for the Series 65 license.
Investment Advisor Home Study Course - Fast Delivery or Online
Becoming an Investment Adviser is not as difficult as many might have thought. There are no college courses required beforehand.
BUILD UP YOUR RESUME AND YOUR CAREER. Good Luck!
Thursday, December 24, 2015
Wednesday, October 14, 2015
Series 7 Class and Tutoring Long Island, NY
Series 7 Exam Custom classes, group tutoring and Private tutor or class available for Long Island Brokerage firms, groups or individuals studying for the Series 7 (or other FINRA Exams)
I am a trainer with American Investment Training and I conduct or can create custom in house private classes for the Series 7. This is available for Long Island firms or NYC
No need to wait for an outside class. I can work around your schedule, keep you informed of every student and their progress. These can be complete classes or "brush up" tutor sessions for 2 or 20 people in your office.
In house or on site training offers the best way to train your employees to ensure they pass the Series 7 exam as quickly as possible.
This includes cram tutor sessions on certain topics. Some broker trainees need extra help on select topics that are on the exam ie: Bonds, Options or combination of topics.
* Day time or Evenings. Weekends can be worked out as well if that is what you need. Long Island, Manhattan or other New York City areas.
15 years experience and "no nonsense" approach.
Reply or call/text to get more information or to simply explain what your situation and need is. All classes and group tutoring can be tailored for you.
Updated Study material is available through American Investment Training at: http://aitraining.com/products.htm
Facebook Finance Career Page: https://www.facebook.com/Finance-Career-211767578848328/
Thank You,
Nick Hunter
American Investment Training
Hauppauge, Long Island New York
aitbroker@gmail.com
Monday, October 12, 2015
Option Spreads - Figuring Credit or Debit Spreads and Bullish Bearish
Spreads are a type of option strategy that involves the Buying and Selling of Calls (call spread) or Buying and selling of Puts (Put Spread). These strategies can be Bullish or Bearish.
If your overriding philosophy is a rise in the market, then you are playing a Bullish Strategy. If you Buy and Write call option contracts, if you are in a debit situation - Where you spent more money on the option purchased than the income received on the one you are selling, it is a debit spread and you are Bullish
Ex:
Buy 1 SFG JAN 40 CALL for $400 (bullish)
Sell 1 SFG JAN 50 CALL for $150 (bearish)
Because the Buy Call side is bullish and the investor paid out a higher premium for that side and is in a debit of - $250 from the premiums - this is a BULLISH CALL SPREAD.
By doing a little reversal, we can create a total opposite approach and philosophy.
Buy 1 SFG JAN 50 CALL for $150 (bullish)
Sell 1 SFG JAN 40 CALL for $400 (bearish)
Now the investor has a Credit of $250, so the profit will be if both options expire. The credit amount equals the maximum gain for the trader. In order for both options to expire, he would need the market to decline as call options lose value or expire if the market declines enough.
This is a credit bearish call spread.
A Put Spread is the same concept, except the Buy Side of the Spread would be bearish, since when you buy a put - you want the market to decline.
Buy 1 TRO DEC 70 PUT for $600
Sell 1 TRO DEC 60 PUT for $100
The above is a debit spread. The debit being -$500. It is a Bearish spread since the Buy Put has a higher premium. The higher cost side always dominates. The debit is also the maximum loss.
Insurance CE Training - get your life and health insurance continuing education online and discounted.
If your overriding philosophy is a rise in the market, then you are playing a Bullish Strategy. If you Buy and Write call option contracts, if you are in a debit situation - Where you spent more money on the option purchased than the income received on the one you are selling, it is a debit spread and you are Bullish
Ex:
Buy 1 SFG JAN 40 CALL for $400 (bullish)
Sell 1 SFG JAN 50 CALL for $150 (bearish)
Because the Buy Call side is bullish and the investor paid out a higher premium for that side and is in a debit of - $250 from the premiums - this is a BULLISH CALL SPREAD.
By doing a little reversal, we can create a total opposite approach and philosophy.
Buy 1 SFG JAN 50 CALL for $150 (bullish)
Sell 1 SFG JAN 40 CALL for $400 (bearish)
Now the investor has a Credit of $250, so the profit will be if both options expire. The credit amount equals the maximum gain for the trader. In order for both options to expire, he would need the market to decline as call options lose value or expire if the market declines enough.
This is a credit bearish call spread.
A Put Spread is the same concept, except the Buy Side of the Spread would be bearish, since when you buy a put - you want the market to decline.
Buy 1 TRO DEC 70 PUT for $600
Sell 1 TRO DEC 60 PUT for $100
The above is a debit spread. The debit being -$500. It is a Bearish spread since the Buy Put has a higher premium. The higher cost side always dominates. The debit is also the maximum loss.
Insurance CE Training - get your life and health insurance continuing education online and discounted.
Friday, October 9, 2015
Binary Options Trading Help - Binary Signals Trade
Binary Options Are Making Traders Rich. American Investment Training Partners with a Pro Signals Mentor to Help you.
Binary Options are simply investments which you make based on whether the current price of an asset will rise or fall by the expiration time.
The reason binary options are so popular is because of their amazing payout amounts. You can generate up to 75% of your investment on every winning trade.
B.O.P.S. trading signals are the easiest to read and can make even the newest binary option trader successful.
LEARN TO TRADE BINARY OPTIONS HERE!
Thank You and Good Fortune
American Investment Training
Securities and Insurance Broker Training
Friday, September 18, 2015
Municipal Bonds and Tax Free Yield - Calculating Tax Equivalent Yield
Municipal Bonds and their rules - regulations are covered quite heavily on the Series 7 Exam. Some of these question deal with the core understanding of Muni Bonds and their advantages. The main quality behind these bonds is their tax free status with regards to interest income. Nothing is exempt from Capital Gains Profit (a trick question sometimes on the Test)
Since Municipal Bonds (large majority of them) are exempt from Federal Tax on the interest received, they do not have to offer high coupon interest rates. This allows States and Local Municipalities to raise capital on borrowed money through a bond issue at a lower cost.
Since many Muni Bonds are backed by taxes (G.O - General Obligation Bonds), this is a benefit to the people who live within that municipality.
Tax Equivalent Yield
This is the yield (not the coupon rate always) that a taxable investment like a corporate bond would have to beat to "out-do" a Muni Bond. This assumes ratings and maturity are fairly equal between the 2.
The formula is:
taxable yield = tax free yield divided by 100-tax bracket
If a Muni Bond had a 3% coupon rate and an investor was in the 28% tax bracket and is also being offered a 4.5% corporate bond, which bond would offer the best yield given the tax advantage of the Municipal.
The Muni in this example is 3%. So 3 divided by 72 (100-28) = 4.16%
That 4.16% is what a taxable investment would have to be better than for the investor to not buy the Muni issue. Again, there will be other factors at play, but strictly speaking YIELD, the Corporate at 4.5% would be better - even though it is a taxable investment.
Free Online Glossary from American Investment Training
Series 65 Note
Become a Licensed Registered Investment Adviser. NO SPONSOR NEEDED and goes with the Series 7. Not INSTEAD of. Earn FEES.
SERIES 65 COURSE HERE - Books, Software and Online Options
Since Municipal Bonds (large majority of them) are exempt from Federal Tax on the interest received, they do not have to offer high coupon interest rates. This allows States and Local Municipalities to raise capital on borrowed money through a bond issue at a lower cost.
Since many Muni Bonds are backed by taxes (G.O - General Obligation Bonds), this is a benefit to the people who live within that municipality.
Tax Equivalent Yield
This is the yield (not the coupon rate always) that a taxable investment like a corporate bond would have to beat to "out-do" a Muni Bond. This assumes ratings and maturity are fairly equal between the 2.
The formula is:
taxable yield = tax free yield divided by 100-tax bracket
If a Muni Bond had a 3% coupon rate and an investor was in the 28% tax bracket and is also being offered a 4.5% corporate bond, which bond would offer the best yield given the tax advantage of the Municipal.
The Muni in this example is 3%. So 3 divided by 72 (100-28) = 4.16%
That 4.16% is what a taxable investment would have to be better than for the investor to not buy the Muni issue. Again, there will be other factors at play, but strictly speaking YIELD, the Corporate at 4.5% would be better - even though it is a taxable investment.
Free Online Glossary from American Investment Training
Series 65 Note
Become a Licensed Registered Investment Adviser. NO SPONSOR NEEDED and goes with the Series 7. Not INSTEAD of. Earn FEES.
SERIES 65 COURSE HERE - Books, Software and Online Options
Friday, September 11, 2015
Short Straddles - Option Strategy Help
Short Straddles for Series 7 - A tutor and tips post for those needing Options help.
A short straddle is the selling or "shorting" of a call and a put option on the same stock or security. These are part of the Options section on the Series 7 but this tutorial can also help individual traders.
The idea or motivation behind a short straddle is to collect the premiums on both options and then hope they expire, thus keeping the premium and attaining a profit. This is one of the few option strategies where an investor wants a neutral market. Nothing too up or down.
Since you will be tested on questions related to Straddles - their maximum gain, loss, break even etc. Lets lay out an example.
SHORT 1 KLK OCT 35 CALL @ $400
SHORT 1 KLK OCT 35 PUT @ $200
The combined premiums collected is the profit point and is the trader's maximum gain.
The maximum gain is $600
The maximum loss is unlimited because of the short call. When you short a naked call, the maximum loss is always unlimited. Shorting a Put does not protect the call or vice versa.
The Break even points are the combined premiums added to the call strike price of 35 and subtracted from the put.
The combined premium is $600 or 6 points.
Thus, the break even points (there are always 2 with straddles) are 41 and 29. If the stock exceeds or goes below these points, the investor is not profitable.
If this were a LONG STRADDLE - The break evens would be the same but the profit would BEGIN as those points are broken through, since in that case the premiums were paid. Long Straddle Option Strategies were discussed in another post on this blog.
SERIES 7 COURSE OPTIONS (BOOKS, SOFTWARE, ONLINE, CLASSES AND MORE)
A short straddle is the selling or "shorting" of a call and a put option on the same stock or security. These are part of the Options section on the Series 7 but this tutorial can also help individual traders.
The idea or motivation behind a short straddle is to collect the premiums on both options and then hope they expire, thus keeping the premium and attaining a profit. This is one of the few option strategies where an investor wants a neutral market. Nothing too up or down.
Since you will be tested on questions related to Straddles - their maximum gain, loss, break even etc. Lets lay out an example.
SHORT 1 KLK OCT 35 CALL @ $400
SHORT 1 KLK OCT 35 PUT @ $200
The combined premiums collected is the profit point and is the trader's maximum gain.
The maximum gain is $600
The maximum loss is unlimited because of the short call. When you short a naked call, the maximum loss is always unlimited. Shorting a Put does not protect the call or vice versa.
The Break even points are the combined premiums added to the call strike price of 35 and subtracted from the put.
The combined premium is $600 or 6 points.
Thus, the break even points (there are always 2 with straddles) are 41 and 29. If the stock exceeds or goes below these points, the investor is not profitable.
If this were a LONG STRADDLE - The break evens would be the same but the profit would BEGIN as those points are broken through, since in that case the premiums were paid. Long Straddle Option Strategies were discussed in another post on this blog.
SERIES 7 COURSE OPTIONS (BOOKS, SOFTWARE, ONLINE, CLASSES AND MORE)
Thursday, September 3, 2015
Options Help For Series 7 Test - Long Straddles
Help and Understanding Long Straddles for the Series 7 Licensing Exam.
A straddle is using calls and puts at the same time. There are long and short straddles. A long straddle is the buying of calls and puts on the same stock or security. Short straddling is shorting calls and puts on the same security. Straddles are tested on the Series 7 exam or other exam where options are part of the outline.
Long Straddle Example
BUY 1 DFG DEC 70 CALL @ $600
BUY 1 DFG DEC 7O PUT @ $150
The main profit aim for DFG stock to rise or fall below the break even points. There are 2 break evens with long straddles since a call and put are held and were paid for. Most long straddle holders are anticipating big movement in the security. They are usually neither bullish or bearish (those terms are more used
with spreads).
BREAK EVEN
The Series 7 will ask the break-even points for straddles. For this straddle:
Call is the strike price plus the COMBINED PREMIUMS. The combined premiums are 750.
So the B/E for the call option side is 77 1/2
The Put side of the long straddle would be the 70 strike price minus the combined premiums of 750 or 7 1/2.
Thus the Break Even for the Put is 62 1/2
Maximum gain on Long Straddles is UNLIMITED.
This is because of the call side of the straddle. If the price of DFG rises above 77.50 and continues to rise, the put can be allowed to expire or traded away. Either way, there is no limit to how high the rise of the stock can go. Anytime you are long a call and do not have an "obligation" that the long call
is covering, your maximum gain is unlimited. If on the Series 7 exam, they present a scenario where the call is traded away and the put is still active, it is no longer a long straddle and the put maximum gain would be the break even in dollars. In this case, the maximum gain is $6250.
The maximum loss is the combined premiums paid. All long straddle's maximum loss is the premiums paid for the call and the put. Obviously if more than 1 contract was bought, the figure will be higher in dollars. If the above example said 3 contracts were bought. The maximum gain would still be unlimted. The break even points would be the same, but the maximum loss would be tripled. 750 times 3.
Series 7 Topic Tip
Key Things to remember on Long Straddles:
They must involve calls and puts
they must be both bought
the profit is heavy movement so the premiums are covered.
No movement will result in a loss of the contracts are held and allowed to expire.
Remember to count the contracts correctly
There will be 2 break even points
Short Straddles will be talked about in a future post, but feel free to post a question here and we'll be happy to answer it.
For Study Options, please visit American Investment Training and our partners for several course choices:
Virtual Video Class Training
Online PASS Guarantee courses for Series 7, 65, 24 and more
Traditional Books and Software Training
A straddle is using calls and puts at the same time. There are long and short straddles. A long straddle is the buying of calls and puts on the same stock or security. Short straddling is shorting calls and puts on the same security. Straddles are tested on the Series 7 exam or other exam where options are part of the outline.
Long Straddle Example
BUY 1 DFG DEC 70 CALL @ $600
BUY 1 DFG DEC 7O PUT @ $150
The main profit aim for DFG stock to rise or fall below the break even points. There are 2 break evens with long straddles since a call and put are held and were paid for. Most long straddle holders are anticipating big movement in the security. They are usually neither bullish or bearish (those terms are more used
with spreads).
BREAK EVEN
The Series 7 will ask the break-even points for straddles. For this straddle:
Call is the strike price plus the COMBINED PREMIUMS. The combined premiums are 750.
So the B/E for the call option side is 77 1/2
The Put side of the long straddle would be the 70 strike price minus the combined premiums of 750 or 7 1/2.
Thus the Break Even for the Put is 62 1/2
Maximum gain on Long Straddles is UNLIMITED.
This is because of the call side of the straddle. If the price of DFG rises above 77.50 and continues to rise, the put can be allowed to expire or traded away. Either way, there is no limit to how high the rise of the stock can go. Anytime you are long a call and do not have an "obligation" that the long call
is covering, your maximum gain is unlimited. If on the Series 7 exam, they present a scenario where the call is traded away and the put is still active, it is no longer a long straddle and the put maximum gain would be the break even in dollars. In this case, the maximum gain is $6250.
The maximum loss is the combined premiums paid. All long straddle's maximum loss is the premiums paid for the call and the put. Obviously if more than 1 contract was bought, the figure will be higher in dollars. If the above example said 3 contracts were bought. The maximum gain would still be unlimted. The break even points would be the same, but the maximum loss would be tripled. 750 times 3.
Series 7 Topic Tip
Key Things to remember on Long Straddles:
They must involve calls and puts
they must be both bought
the profit is heavy movement so the premiums are covered.
No movement will result in a loss of the contracts are held and allowed to expire.
Remember to count the contracts correctly
There will be 2 break even points
Short Straddles will be talked about in a future post, but feel free to post a question here and we'll be happy to answer it.
For Study Options, please visit American Investment Training and our partners for several course choices:
Virtual Video Class Training
Online PASS Guarantee courses for Series 7, 65, 24 and more
Traditional Books and Software Training
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