by Jens Rabe is the second book by this options expert that I can now hold in my hands. I had already liked his first book very much, which is why I was also looking forward to this copy.
Basically, his books are more for the specialists among us. In his academy, the author also teaches them the right way to deal with this not entirely simple asset class. Even if he speaks in this book of the perfect investment strategy for beginners, he certainly does not mean newcomers to the stock market, but investors who want to open up a new asset class for themselves with options and include it in their portfolio. But you don't need a degree in finance or the Black-Scholes model to trade options effectively. This time in particular, the author's focus was on a strategy that is as simple as possible for quick implementation and for rapid entry into successful trading with this asset class.
He took away from his first book that many readers lacked a connection to commodities as an investment and speculation object. And as a commodities trader, you need to understand not only options trading, but also the peculiarities of the commodities market.
"We Germans are not a country of shareholders and certainly not a country of commodity traders." Jens Rabe
Options strategies in themselves to implement but is already much more difficult than stock strategies, where with a few clicks a deposit can be opened at a broker and you need to buy the first securities no more than an investment idea and the securities identification number of the companies or funds. With financial options, Greek letters suddenly come into play, the meaning of which should be known.
With his DuO principle presented in this book, he wants to build the bridge between stocks and options and simplify the entry into this asset class. Because the reader does not have to think himself first into a new market, but comes quickly into the implementation. I find it super sympathetic that Jens Rabe does not draw unrealistic return scenarios, as you get to read so often.
The goal of the DuO principle is to generate a constant income on the stock markets. Unlike so many strategies, this concept includes a mental reward component that helps the investor succeed in the markets over the long term and stay true to his strategy.
After the basics about dividend shares and options, the concept is presented, which is basically quite simply based on the sale of put options and the purchase or allocation of dividend shares when these options are executed by the buyer. This may not sound very exciting at first glance, but the author shows that it can be used in a fairly relaxed way, nice and above all safe returns.
For the doers among us, however, it is a little sobering that for the implementation of this strategy, you should first have some small change on the deposit. Because options always run over 100 shares. With sufficient diversification, everyone can calculate for themselves how high the entry hurdle for such an investment looks.
As a dividend investor and options trader, I think you should take a look at this book. Even if you don't end up implementing the strategy presented, it will still help you broaden your investment horizons and there is a lot of interesting stuff in it.