About Options

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

Options exist on all kinds of financial products, such as shares, commodities and indices. FollowWeekly.com only uses options on the EuroStoxx50 index. This EuroStoxx50 is an index of the 50 largest companies in Europe.

Options can be bought or sold. FollowWeekly.com only sells options. By selling options a commitment is made. This commitment means that you buy the index after a certain period of time at a pre-agreed price. For this commitment you get money, the so-called option premium. In order to make this commitment, you need to keep money on your investment account, so called margin. The amount of this differs per bank or broker, but is on average about 3000 euros for the Eurostoxx50.

Options are available with different durations, for example 1 day, 1 week or 1 month.

FollowWeekly.com only works with weekly options. The commitment therefore takes exactly 1 week.

Note: investing with options involves costs and risks that do not occur when saving. You can lose (part of) your deposit or more.

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