Legging In and Out

Legging in and out of an options strategy involves executing the individual legs of the strategy at different times rather than simultaneously. Both approaches require careful monitoring and strategic planning to manage the associated risks and potential rewards effectively.

Currently, we only support legging into two-leg spreads, including vertical, calendar, and diagonal strategies.

Legging in

Involves entering a strategy by executing each leg separately, which allows for adjustments based on changing market conditions but also introduces the risk of adverse price movements between trades.

Legging out

Refers to closing each leg of the strategy individually, which can be advantageous for taking profits or cutting losses on specific legs, but similarly carries the risk of market fluctuations affecting the remaining positions.

How do I leg in?

To leg in, please follow the instructions below for both the Webull mobile app and our intuitive desktop application:

App:

1. Tap the Webull logo (bottom center) to view your account.
2. Within the Assets tab, select your desired options contract under My Positions.
3. Tap More Actions (three vertical dots found bottom right).
4. Tap Build a Strategy on Current Position.

Desktop:

1. Navigate to Account.
2. Click the More Actions button (three vertical dots) left of your desired options contract within the Positions widget.
3. Select Build a Strategy on Current Position.

How do I leg out?

To leg out of your desired strategy please follow the steps below on the Webull mobile app and desktop application:

App:

1. Tap the Webull logo (bottom center) to view your account.
2. Within the Assets tab, select your desired options strategy under My Positions.
3. Under Leg(s), tap Leg Out of the contract you wish to close.
4. Enter order details and submit trade.

Desktop:

1. Navigate to Account.
2. Under the Positions widget, click the More Actions (three vertical dots left of strategy).
3. Select Close Position - ex. ABC $100 01 Jan 24 Call 100

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 and Option Spread Risk Disclosure before trading options.