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Posted on Oct 06, 2024

On the same day in a margin account, a customer sells short 100 shares of ABC at $31 and buys 1 ABC Jan 35 Call

On the same day in a margin account, a customer sells short 100 shares of ABC at $31 and buys 1 ABC Jan 35 Call @ $3. This client's market outlook is:

A. very bearish

B. cautiously bearish

C. very bullish

D. cautiously bullish

*Please explain thoroughly. I really want to understand this. Thank you.

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