In a bear market,which option positions make money?
I. Buying a call.
II. Writing a call.
III. Buying a put.
IV. Writing a put.

Question

Quizplus · Accepted Answer

In a bear market, writing a call can be profitable because the price of the underlying asset is likely to decrease, making it less likely that the call will be exercised. Buying a put can also be profitable because the value of the put option increases as the price of the underlying asset decreases.

In a Bear Market,which Option Positions Make Money