SIE practice questionmediumPut options
If an investor sells (writes) a naked put option, their market outlook is generally:
- ABullish, expecting price to rise or remain stable✓ Correct answer
- BBearish, expecting price to decline
- CNeutral, expecting high volatility
- DNeutral, expecting low volatility
Explanation
Why A — Bullish, expecting price to rise or remain stable
Naked put writers want the stock to rise or stay level so the put expires worthless. Writing puts is not bearish or volatility-based.
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