Available Options Strategies

What are the options trading levels, and what strategies can I trade at each?

We offer up to four options trading levels. Cash accounts (including IRAs) can apply for up to Level 2, and margin accounts can apply for up to Level 4. The strategies available at each level are listed below:

Level 1

• Covered Calls
• Buy-Writes
• Cash-Secured Puts

Level 2

Level 1 strategies as well as:

• 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

Level 1-2 strategies as well as:

• 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

Level 1-3 strategies as well as:

• Naked Equity Calls
• Naked Equity Puts
• Naked Index Calls
• Naked Index Puts
• Front Ratio Call Spread
• Front Ratio Put Spread

For a brief description of each strategy, please navigate to Options Strategies Explained.

Calendar spreads and diagonal spreads are not available for cash-settled index options.

What are the requirements to trade spreads?

To trade spreads, your account must meet both of the following requirements:

• A margin account with Level 3 options approval
• A minimum start-of-day margin equity of $2,000

What should I know about Options Level 4?

Options Level 4 allows for the uncovered selling of both calls and puts, also known as naked options trading. Because of the heightened risk involved, traders must meet certain eligibility requirements. If approved, a minimum net account value of $10,000 is required to trade these unsecured (naked) options.

Level 4 strategies are only supported for stocks in the S&P500, indices, and certain index ETFs.

What are my obligations as an options trader at expiration?

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.

What happens to my in-the-money options at expiration?

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.

How do I submit an early exercise request?

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.

Can I exercise a Long Put without holding the underlying shares?

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.

Where can I learn more about Webull's options trading terms and conditions?

To learn more details about the terms and conditions of options trading on Webull, please read the Webull Financial Options Agreement (Omnibus).

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.