How to use options to generate income

Jason Teh, Portfolio Manager at Investors Mutual, says that options don’t have to be used for making leveraged bets on the direction of stocks. Instead, investors can use options as a way to generate income, while entering and exiting positions at an attractive price. “If we want to reduce our exposure in a stock, we will sell call options. That way you’re reducing the position of that particular stock in the fund. When it comes to selling puts, we will focus on high-quality companies that we would like to invest in.” Watch the video below to learn more: