Options Strategies
What is the correct sequence for opening an options account?
Options account sequence: New Account -> ODD -> Principal Approval -> Agreement.
Complete Analysis & Legal Rationale
The correct sequence is: (1) New account form completed, (2) Options Disclosure Document (ODD) delivered, (3) Principal/supervisor approves account for options trading, (4) Options agreement signed and returned by customer. This sequence ensures proper documentation and approval.
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:
The ODD must be delivered before the agreement is signed, and new account form comes first.
Matches the verified teaching point in the explanation.
Principal approval comes after the new account form and ODD delivery.
The new account form must be completed before ODD delivery.
Official Standard: Customer account information recordkeeping requirements (verify current text).
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.