> If you anticipate that the price of a stock will rise, you could buy the stock, buy a call, sell a covered call, or sell

If you anticipate that the price of a stock will rise, you could buy the stock, buy a call, sell a covered call, or sell

Posted at: 2014-12-05 
Yes, you could do any of those things.

What are you asking?

If you anticipate that the price of a stock will rise, you could buy the stock, buy a call, sell a covered call, or sell a put. All four positions may generate profit if the price of the stock rises, but the cash inflows or outflows, the amount of any gains, and the potential losses differ for each position. Currently, the price of a stock is $86; four month calls and puts with a strike price of $85 are trading for $10.50 and $8.25, respectively.