Key Takeaways
- Sales literature includes materials that explain options strategies or products.
- All options sales literature requires pre-use principal approval.
- Educational content about options has specific requirements.
- Sales literature must be kept current and updated when necessary.
- Distribution must be tracked and documented.
Last updated: January 2026
Options Sales Literature Review
Sales literature is material that explains products, services, or strategies. For options, this includes educational materials, strategy guides, and product descriptions.
What Constitutes Sales Literature
Examples of Options Sales Literature
| Type | Description |
|---|---|
| Strategy guides | Documents explaining options strategies |
| Educational brochures | General options education materials |
| Product descriptions | Information about specific options products |
| Seminar materials | Handouts for educational events |
| Research reports | Analysis of options opportunities |
Review Requirements
Pre-Approval Process
| Step | Requirement |
|---|---|
| Submission | Author submits to designated principal |
| Review timeline | Review before first use |
| Documentation | Written approval with date |
| Version control | Track revisions and updates |
Review Checklist
When reviewing options sales literature, verify:
| Element | Check |
|---|---|
| Accuracy | All statements factually correct |
| Balance | Risks and benefits both addressed |
| Disclosures | Required disclosures included |
| Currency | Information is current |
| ODD reference | Proper reference to ODD |
Content Standards
Required Elements
| Element | Requirement |
|---|---|
| Risk disclosure | Must discuss risks of options trading |
| ODD reference | Must direct readers to ODD |
| Not investment advice | Cannot be personalized recommendation |
| Source citations | Data sources must be identified |
Educational vs. Promotional
| Educational | Promotional |
|---|---|
| Explains how options work | Encourages options trading |
| Objective information | Emphasizes benefits |
| No specific recommendations | May suggest strategies |
| Lower regulatory scrutiny | Higher regulatory scrutiny |
Tip: Even educational content must be balanced and cannot omit material risks.
Maintenance and Updates
When Updates Are Required
| Trigger | Action |
|---|---|
| Rule changes | Update to reflect new requirements |
| Market changes | Update if material facts changed |
| Product changes | Update for new product features |
| Error discovered | Correct and re-approve |
Version Control
| Requirement | Best Practice |
|---|---|
| Date marking | Include version date on materials |
| Expiration | Set review/expiration dates |
| Archive | Maintain copies of all versions |
| Withdrawal | Remove outdated materials from use |
Distribution Controls
Tracking Distribution
| Element | Requirement |
|---|---|
| Who received | Track which customers received materials |
| When distributed | Date of distribution |
| Which version | Specific version distributed |
| How delivered | Method of delivery |
Distribution Limitations
| Rule | Description |
|---|---|
| Suitability | Only distribute to appropriate audiences |
| Accompaniment | May need to accompany with ODD |
| Follow-up | May require representative follow-up |
Test Your Knowledge
A brochure explaining covered call strategies distributed to customers would be classified as:
A
B
C
D
Test Your Knowledge
Options sales literature must be updated when:
A
B
C
D
Test Your Knowledge
Educational materials about options strategies:
A
B
C
D
Test Your Knowledge
How long must records of options communications be retained?
A
B
C
D