How to use options to generate income

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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:

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