Question

Suppose trader John is Moderate bullish on the market, which trading strategy (or strategies) will you...

Suppose trader John is Moderate bullish on the market, which trading strategy (or strategies) will you recommend to him?

Long a butterfly

Long a call

Long a bull spread

Short a call

Short a butterfly
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Answer #1

Correct answer: Long a bull spread

Long a bull spread is a option strategy for moderate bullish market view. In case of Long bull spread buy a call option and simultaneously sell a call option.

Other option strategy and its market view:

Short a butterfly: Neutral market view

Short a call: Bearish market view

Long a call: Very Bullish market view

Long a butterfly: Neutral market view

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