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What options trading strategies does Webull support?

Webull provides different options trading strategies to help clients establish their own investment strategies to reach investment goals. The strategies include:

Single-leg Option

Single option or single-leg option is the very basic strategy that has only one leg. You buy a single option (long call, long put), or you sell a single option (short call, short put).

Covered Stock

A covered stock strategy consists of writing a call or put that is covered by an equivalent long/short stock position.

Vertical

A vertical strategy (vertical spread) involves the simultaneous buying and selling of multiple options of the same underlying security, same type (puts or calls), same expiration date, but at different strike prices.

Butterfly

A butterfly strategy is combined with either three calls or three puts with a ratio of 1-2-1, with a fixed risk and capped profit. It is a strategy when you perceive the volatility of the stock price to be low or high.

Condor

A condor strategy is a non-directional options strategy that limits both gains and losses while seeking to profit from either low or high volatility. There are two types of condor strategy. A long condor aims to make a profit when stock prices are expected to stay stable, and a short condor earns a return when the stock prices are expected to go up or down significantly. Both long and short condors can use either calls or puts, but they always use just one of them at a time.

Collar

A collar strategy is a strategy implemented to protect against large losses, but it also limits large gains. It a strategy when you expect the price of the underlying security will go up or down over the long term but are unsure of shorter term prospects.

Straddle

A straddle is a neutral options strategy that involves simultaneously buying both a put option and a call option or selling both a put option and a call option for the underlying security with the same strike price and the same expiration date. There are two types of straddle strategy. A long straddle aims to make a profit when stock prices are expected to go up or down significantly and a short straddle earns a return when the stock prices are expected to stay stable or move in a narrow range near the strike price.

Strangle

A strangle is an options strategy where the investor holds a position in both a call and a put option of the same underlying security, same expiration date, but at different strike prices. A long strangle aims to make a profit when stock prices are expected to go up or down significantly and a short strangle earns a return when the stock prices are expected to stay stable or slight price change.

Iron Butterfly

An iron butterfly strategy is combined with two calls and two puts which are spread out over three strike prices, all with the same expiration date. A long strangle aims to make a profit when stock prices are expected to go up or down significantly and a short strangle earns a return when the stock prices are expected to stay stable or slight price change. Both the potential profit and maximum risk are limited.

Iron Condor

An iron condor strategy is combined with two calls and two puts with four strike prices, all with the same expiration date. An iron condor aims to make a profit when stock prices are expected to go up or down significantly and a short iron condor earns a return when the stock prices are expected to stay stable or move in a narrow range. Both the potential profit and maximum risk are limited.


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.

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