SIE - Securities Industry Essentials Exam

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An investor that is utilizing an options income strategy will MOST likely use which of the following?

Buying in the money puts
A
Selling in the money calls
B
Selling out of the money covered calls
C
Buying straddles and strangles
D

Explanations

Options income strategies usually involve selling either naked out of the money calls or covered calls. Selling in the money options is rarely part of this type of strategy. Buying options or options spread is not an income producing strategy.