Question

A stock is trading at $150, and you feel it would be a great buy if it dropped to $130. Therefore, what should you do write a
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Answer #1

Option A : Corrent

Write a Put option with strike price of $130. This way the buyer of option will exercise the option when price is 130 or lower than 130, and you will get the stock at 130. If the price remains above 130, you get the option premium as profit.

Option B gives the obligation to sell. But in question user wants to buy.

Option C would be like buying the stock at $150, which is not the objective

Option D gives the option to see.But in question user wants to buy.

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