You think the price of GM stock is going to rise. In order to make money, you could either sell a call option on GM stock, or buy a put option on GM stock.

Question

Quizplus · Accepted Answer

Selling a call option would obligate you to sell the stock at the strike price, which is not beneficial if you believe the stock price will rise. Buying a put option gives you the right to sell the stock at the strike price, which is also not beneficial if you expect the stock price to increase. Instead, you might consider buying a call option to profit from the stock's price increase.

You Think the Price of GM Stock Is Going to Rise