Series 7 - General Securities Representative Exam
It is June. An investor expects little to no movement in BCD corp stock over the next month. What would you suggest to the investor?
Sell the July ATM StraddleA
Buy the July ATM StraddleB
Buy 100 shares and sell an OTM CallC
Short 100 Shares and sell an OTM putD
Selling the straddle is selling a call and put in the same expiration at the same strike in anticipation of sideways price action