lessons learnt: Buying options
- As you might have noticed, options generate leverage! With just a small investment it is possible to generate a good yield.
- This is obviously implicates risks. Going back to the previous video. It is clear that with 550 EUR you can buy indirect shares for a value of 2500 EUR. Be careful, if you have for example 3000 EUR on your account do not get tempted to take a big risk by buying too many calls.
- Selling calls on your stocks can generate a good additional income.
- Wisely note that you should only do this when you own stocks, especially when you are new to options.