You are a portfolio manager who uses options positions to customize the risk profile of your clients. In each case, what strategy is best given your clients objective?

a.

Performance to date: Up 16%.

Client objective: Earn at least 15%.

Your scenario: Good chance of large stock price gains or large losses between now and end of year.

	Buy a call option
	Write a call option
	Long straddle
	Long bullish spread
	Short straddle
	Short bullish spread

b.

Performance to date: Up 16%.

Client objective: Earn at least 15% with limited losses

Your scenario: Good chance of large stock price losses between now and end of year.

	Short put options
	Long put options
	Short call options
	Long call options