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You are long 1000 shares of XYZ stock. You want to stay in the position but are afraid of a move lower in the stock.
You are long 1000 shares of XYZ stock. You want to stay in the position but are afraid of a move lower in the stock. The stock is currently at $125.94 and you only want to risk $6 from the current price. Which strategy below would best accomplish your objective? a. covered call b. covered put c. straddle d. bull call spread e. protective put 21. You are short 1000 shares of XYZ stock and you want to limit losses to the upside should the position go against you. You want to use an option position to control your risk. Which of the strategies below best accomplishes your objective? a. covered call b. covered put c. protective call d. straddle e. none of the above 22. You are long 1000 shares of XYZ stock. You want to stay long the stock and produce income on your investment by using options. You are fine with selling the stock at a higher price. Which strategy below best accomplishes your objective? a. straddle b. covered put c. covered call d. protective put e. none of the above
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