Series 7 - General Securities Representative Exam
Your client is extremely bullish on a technology stock. He has an aggressive growth investment objective and 30 years to retirement. He wants to profit from a large move in the underlying stock over the next year. Which of the following might you suggest?
Buy put options on the stockA
Buy at the money calls that expire in a monthB
Buy LEAP callsC
Buy 100 shares of the stock and sell a covered callD
Buying LEAP calls makes sense here given the investor's age and investment objective. LEAP calls will give him 1 - 2 years until expiration, so the time decay of the options won't hurt him at this time.