Question

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

Answer 1

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).