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Justin owns 400 shares of ORNG stock which he bought 10 months ago at $20 per share and has now risen to $35 per share.
Justin owns 400 shares of ORNG stock which he bought 10 months ago at $20 per share and has now risen to $35 per share. He is afraid the stock price will fall before he has owned it for a full year, but wants to postpone realizing profits on the stock for several months, when it will become a long-term rather than short-term gain. He can protect his profit and avoid the short-term capital gains rate by
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a. writing covered calls.
b. writing puts.
c. buying puts.
d. buying calls.
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