11.6k views
3 votes
Which of the following are bullish?

Options:
Option 1: Long call long put
Option 2: Long put short put
Option 3: Short call short put
Option 4: Long call short put

User Ji
by
8.2k points

1 Answer

5 votes

Final answer:

The only bullish option is long call short put.

Step-by-step explanation:

The bullish options in this case refer to options that indicate an expectation of the stock price increasing.

Option 1, long call long put, is not bullish because a long put involves betting on the stock price going down.

Option 2, long put short put, is not bullish either as it involves both a long put (expectation of stock price going down) and a short put (expectation of stock price staying the same).

Option 3, short call short put, is also not bullish because a short call involves betting on the stock price going down.

Option 4, long call short put, is the only bullish option as it involves a long call (expectation of stock price going up) and a short put (expectation of stock price staying the same).

User Roheen
by
8.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories