Available Option Strategies

What are the available Option Strategies (Multi-Leg)?

We offer up to three type of options trading levels. The following displays what strategies can be traded at each options level:

Level 1

• Covered Calls
• Cash-Secured Puts

Level 2 (including level 1 strategies)

• Long Calls
• Long Puts
• Collars
• Protective Puts
• Protective Calls (margin account required)
• Covered Puts (margin account required)
• Long Straddles (margin account required)
• Long Strangles (margin account required)

Level 3 (including Level 1-2 strategies)

• Credit Spreads
• Debit Spreads
• Long & Short Butterflys
• Long & Short Iron Butterflys
• Long & Short Condors
• Long & Short Iron Condors
• Back Ratio Call Spread
• Back Ratio Put Spread

Level 4

This strategy will be available in a future release.

For a brief description of each strategy, please click here.

Please note, calendar spreads and diagonal spreads are not available for VIX.

What are the requirements to trade spreads?

Trading spreads requires a margin account with level 3 options approval and a minimum account balance of USD 2,000.

Obligations and disclosures to acknowledge:

Clients are expected to close any near-the-money, at-the-money, or in-the-money option positions prior to the close on expiration date, if they do not intend to exercise them or do not have the equity in their account to support the exercise. Open options positions will be liquidated by Webull if they’re near-the-money, at-the-money, or in-the-money upon expiration and there is not enough overnight buying power in the account to support the exercise. This applies in both margin accounts and cash accounts.

In-the-money options will be exercised automatically after market close on the expiration date, unless the client has submitted a Do Not Exercise request (DNE). These requests may be submitted through our mobile app. The cut-off time for submitting DNE instructions is up until the close on expiration date. Early exercise requests must be given at least one business day prior to the expiration date no later than 30 minutes after market close. Any exercise requests submitted after that time will be processed on a best-effort basis.

For Long Puts in a cash account, options may not be exercised if there are no underlying long shares to offset the entire exercise. For Long Puts in margin accounts that do not hold the underlying shares, an exercise may be allowed if the account can support the resulting position.

Option trading entails significant risk and is not appropriate for all investors. Option investors can rapidly lose the entire value of their investment in a short period of time and incur permanent loss by expiration date. You need to complete an options trading application and get approval on eligible accounts. Please read the Characteristics and Risks of Standardized Options before trading options.