You own 10,000 shares of ABC which is trading at $25.

ATM Calls are $8.50 with a Delta of .67

ATM Puts are 6.25 with a Delta of -.13.

How would you hedge your position using calls (each option represents 100 shares)?

What are your total losses/gains if ABC trades at $20?

A. Write 149 calls; you have made $49,915

B. Sell 233 calls; you have gained $95

C. Write 149 calls; you have lost $85

D. Buy 149 calls; you have gained $85