Key Takeaways
- All options advertising requires pre-use principal approval.
- Advertisements must be fair, balanced, and not misleading.
- Performance claims have specific requirements and limitations.
- Social media posts about options may be considered advertising.
- Filing with FINRA may be required for certain advertisements.
Last updated: January 2026
Options Advertising Review
Options advertising is subject to strict regulatory requirements. As a supervisor, you must ensure all advertising is fair, balanced, and compliant before it is used.
Pre-Approval Requirements
What Requires Pre-Approval
| Material | Pre-Approval Required |
|---|---|
| Print advertisements | Yes |
| Television/radio ads | Yes |
| Website content | Yes |
| Social media posts | Yes (if retail communication) |
| Webinars/videos | Yes |
| Brochures/flyers | Yes |
Approval Process
| Step | Action |
|---|---|
| 1. Submission | Material submitted to principal |
| 2. Review | Principal reviews for compliance |
| 3. Documentation | Approval recorded with date and signature |
| 4. Modifications | If needed, returned for revision |
| 5. Filing | Submit to FINRA if required |
Content Standards
Fair and Balanced Requirement
Options advertising must:
| Requirement | Description |
|---|---|
| Balanced presentation | Benefits and risks given equal weight |
| No misleading statements | All statements must be accurate |
| No omissions | Cannot omit material facts |
| Clear language | Understandable to target audience |
Prohibited Content
| Prohibited | Example |
|---|---|
| Guarantees | "Guaranteed 20% returns" |
| Exaggerated claims | "Risk-free options trading" |
| Misleading comparisons | Unfair comparison to other investments |
| Omission of risks | Emphasizing profits without mentioning losses |
Performance Advertising
Rules for Showing Performance
| Rule | Requirement |
|---|---|
| Time period | Must show performance for minimum period |
| Consistency | Cannot cherry-pick favorable periods |
| Net of fees | Must show performance net of costs |
| Hypothetical | Clear disclosure if not actual results |
Hypothetical Performance
If using hypothetical or backtested results:
| Requirement | Details |
|---|---|
| Prominent disclosure | Must state results are hypothetical |
| Limitations | Must explain limitations of hypothetical data |
| Assumptions | Must disclose all material assumptions |
Social Media Considerations
Options and Social Media
| Platform Type | Considerations |
|---|---|
| Static posts | Same rules as traditional advertising |
| Interactive | May need real-time supervision |
| Third-party | Firm may be responsible for linked content |
Compliance Tips for Social Media
- Pre-approve content before posting
- Monitor comments and responses
- Retain records of all posts
- Have clear policies for representatives
FINRA Filing Requirements
When Filing is Required
| Situation | Filing Requirement |
|---|---|
| New member | First year—file within 10 business days |
| Options advertising | File within 10 business days of first use |
| FINRA request | Upon request by FINRA |
Exam Tip: New member firms must file options advertising within 10 business days of first use during their first year. This filing requirement is a common exam topic.
Test Your Knowledge
Options advertising that shows performance results must:
A
B
C
D
Test Your Knowledge
A firm's static social media post about options strategies to the public would be classified as:
A
B
C
D