You Are Convinced That a Stock's Price Will Move by at Least

Multiple Choice

You are convinced that a stock's price will move by at least 15% over the next 3 months. You are not sure which way the price will move, but you believe that the results of a patent hearing are definitely going to have a major effect on the stock price. You are somewhat more bullish than bearish however. Which one of the following options strategies best fits this scenario?

A) buy a strip.
B) buy a strap.
C) buy a straddle.
D) write a straddle.