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Lucas's client pointed out during a recent meeting that the price of Stuff Stores Compary stock has remained steady during the past six months. The
Lucas's client pointed out during a recent meeting that the price of Stuff Stores Compary stock has remained steady during the past six months. The client is convinced that the stock will continue to trade in a narrow range. The client, however, would like to make money on the stock. Which of the following strategies will cause Lucas's client to experience the greatest potential loss if Stuff Stores' stack price begins to fluctuate more widely?
a Selling a naked put option.
b Selling a naked call option.
c Selling a covered call option.
d Buying a call option.
e Buying shares in Stuff Stores Company directly.
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