Option Options

Option Options
 By Finance Ocean

Which of the following option strategies would provide an investor with the greatest gain potential in a rising market?

Pick an answer:

1. Short Put
2. Long Put
3. Short Call
4. Long Call

Answer: # 4

Explanation: Both long calls and short puts are profitable in a rising market, but long calls have unlimited gain potential.

A short put is limited to the premium received for it.

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