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What are options?

Options are financial products that are traded on an exchange. By using them cleverly, an interesting return can be achieved on a weekly basis with relatively little risk.

There are options on all kinds of financial products, such as shares, commodities and indices. only uses options on the AEX or EuroStoxx50 index. The EuroStoxx50 index is an index of the 50 largest companies in Europe.

Options can be bought or sold. only sells options. By selling options a commitment is made. This obligation means that you buy the index after a certain period of time at a predetermined price. For this obligation you get money, the so-called option premium. In order to enter into the obligation, you need to keep money in your investment account. The amount of this varies per bank or broker, and is on average 5,000 euros.

Options are available with different maturities, for example 1 day, 1 week or 1 month. only works with weekly options. The commitment entered into therefore lasts exactly 1 week.

More information about options can be found here.