Call Options
An investor who is bullish on a stock would most likely:
Bullish = buy calls or sell puts. Bearish = buy puts or sell calls.
Complete Analysis & Legal Rationale
A bullish investor expects the stock price to rise. Buying a call option profits when the stock goes up - it gives the right to buy at a fixed price while the stock rises.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Buying puts is a BEARISH strategy - you profit when the stock falls.
Selling calls is bearish to neutral - you lose if the stock rises significantly.
Matches the verified teaching point in the explanation.
Short selling is BEARISH - you profit when the stock falls.
Official Standard: Governs options accounts, approvals, and related supervisory requirements (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.