Question
Sammy B believes that GOOG can not go up any higher in value as the company will underperform earnings and continue to lose market share
Sammy B believes that GOOG can not go up any higher in value as the company will underperform earnings and continue to lose market share to other competitors such as DuckDuckGo. However, Sammy B doesn't necessarily believe that GOOG is going to quickly depreciate in price either, in fact he believes the company could maintain close to their current market price for years. Sammy B has a very high risk tolerance against losses and wants to put an options trade on GOOG. You're his stockbroker. What trade below do you recommend as most advisable to Sammy B, based on his beliefs (while warning him of any necessary risks)?
Group of answer choices
A long at-the-money GOOG call
A short at-the-money GOOG call
A long at-the-money GOOG put
A short at-the-money GOOG put
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