Which of the following is an income producing strategy?
A) Buying naked calls.
B) Protective puts.
C) Covered calls.
D) Straddles.
E) Buying naked puts.

Question

Which of the following is an income producing strategy?
A) Buying naked calls.
B) Protective puts.
C) Covered calls.
D) Straddles.
E) Buying naked puts.

Quizplus · Accepted Answer

Covered calls involve owning a stock and selling call options on that stock, generating income from the premiums received. The other options listed may involve options trading, but they do not necessarily generate income. Some options strategies, such as buying naked calls or puts, may even involve paying premiums rather than receiving them.

Which of the Following Is an Income Producing Strategy