Series 7 - General Securities Representative Exam

Training Mode

John owns 1,000 shares of BCD Corp. He is concerned that the next earnings announcement may send the stock lower, but does not want to sell the stock, if possible. He would be willing to sell it the stock at a higher price, however. What is a strategy that John can employ to hedge his existing long position?

Buy BCD calls
A
Buy BCD OTM Calls
B
Sell BCD puts
C
Sell covered BCD calls
D