Options Strategies
A customer opened an options account and received the Options Disclosure Document (ODD). The signed options agreement has not been returned within 15 days. What trading activity is permitted?
No signed options agreement after 15 days = closing transactions only.
Complete Analysis & Legal Rationale
If the signed options agreement is not returned within 15 days of account approval, only closing transactions are permitted. The customer cannot open new options positions until the agreement is returned. This protects both the customer and the firm.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Full trading is only permitted after the signed agreement is received.
Matches the verified teaching point in the explanation.
Closing transactions are allowed to let customers exit existing positions.
No distinction is made for covered calls; the rule applies to all opening transactions.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.