5.4 Lessons learnt

Selling calls on your stocks can generate as a nice and welcome additional income.
Note that this is only wisely to do when you own the stocks, especially when you are new to options!
Selling put options means you are obliging yourself to buy stocks for a certain price at a certain moment in time. It is very important to never sell more option then you are looking to own shares!
Imagine you sell 10 puts on a stock with a strike price of 20,00. This means you are taking on an obligation of 10 x 20,00 x 100 = 20.000 EUR.
You do not need to have this entire amount on your account but if the price of a stock goes to 14,00 you are obliged to buy at 20,00.

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