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In which of the following choices are both the stock and options positions on the same side of the market?

A. Long call/long stock
B. Short call/long stock
C. Long put/short stock
D. Short put/short stock

User Modest
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1 Answer

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Answer:

A. Long call/long stock

C. Long put/short stock

Step-by-step explanation:

These two stock options are beneficial in the bull markets also they are for the same side i.e. the upside. The short call is when profitable when the market declines while on the other hand the long call should be when the market boost

Like this, the short put and short stock dealed with

And, the long put is profitable when the market declines and the short stock is profitable when the market declines

Therefore the option A and C is correct

User Scuro
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