Broaden Your Options Trading Experience with Index Options

Broaden Your Options
Trading Experience with

Index Options

SPX, Mini SPX (XSP), Nanos, and VIX Index Options
Free real-time index data
Access to mobile app, web, and desktop platforms

What is an Index Options?

An index option is a contract that gives the holder the right to buy or sell the value of the underlying index at the specified strike price. Since index options are cash-settled, there is no transfer of any equity. Instead, there is a cash settlement given out to the holder based on the difference between the exercise settlement value and the strike price.

STOCKS

STOCKS OPTIONS

INDEX OPTIONS

Diversification
Access shares of specific companies
Access derivatives on shares of specific companies
Access derivatives that follow specific indices
Settlement method
Shares of companies
Shares of underlying stock
Cash
Exercise style
N/A
American style (settle anytime)
Mostly European style (settle only at expiration)
Tax Treatment
Standard capital gains tax treatment*
Standard capital gains tax treatment*
60% long term, 40% short-term capital gains*

Why Trade Index Options?

Index options can help traders diversify a portfolio and gain broad exposure with (in most cases) one trade. As compared to single stocks, index options reduce the probability of experiencing a gap move and help narrow the focus to market risk instead of individual company risks.
Index options tend to have lower volatility than options on individual stocks. Volatility around earnings reports, mergers, and other news events can have a significant impact on stock options prices. But with index options, those volatile moves tend to smooth out.
Index options are European style, meaning they cannot be exercised before expiration. Equity options, on the other hand, can be exercised anytime. Stock options settle to shares of the underlying stock, while index options settle to cash.
Index options typically qualify for the 60% long-term, 40% short-term capital gains tax treatment*.
Index options often have narrower bid/ask spreads than single-stock options due to greater liquidity.

*Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options are entitled to be taxed at a rate equal to 60% long-term and 40% short-term capital gain or loss, provided that the investor involved and the strategy employed satisfy the criteria of the Tax Code. Investors should consult with their tax advisors to determine how the profit and loss on any particular option strategy will be taxed. Tax laws and regulations change from time to time and may be subject to varying interpretations.

What Index Options Do We Offer?

S&P 500 Index Options

The Standard & Poor's 500 Index is a capitalization-weighted index of 500 stocks from a broad range of industries. The component stocks are weighted according to the total market value of their outstanding shares. The impact of a component's price change is proportional to the issue's total market value, which is the share price times the number of shares outstanding. These are summed for all 500 stocks and divided by a predetermined base value. The base value for the S&P 500 Index is adjusted to reflect changes in capitalization resulting from mergers, acquisitions, stock rights, substitutions, etc.

A.M. Settlement (SPX) Nanos Weeklys (SPXW) Mini-SPX (XSP)

Historical Performance for the VIX Index

VIX Index Options*

The VIX Index is a financial benchmark designed to be an up-to-the-minute market estimate of expected volatility of the S&P 500 Index, and is calculated by using the midpoint of real-time S&P 500® Index (SPX) option bid/ask quotes. More specifically, the VIX Index is intended to provide an instantaneous measure of how much the market thinks the S&P 500 Index will fluctuate in the 30 days from the time of each tick of the VIX Index.

Learn more about VIX Options Product Specifications. >

*VIX Index Options are highly speculative in nature and not appropriate for every investor to trade. Please educate yourself on the VIX product before trading.

Trade Options with Lower Fees*

Webull charges no assignment or exercise fees, while certain exchanges charge a proprietary index option fee on select index options that only trade on their exchange. Please see the rates below.

Stocks, Stock Options, and Index Options

Ticker

Description

Tier Schedule

Fee per Contract

SPX
S&P 500 Index
S&P 500 Index
<$1
>=$1
$0.57
$0.66
SPXW
S&P 500 Index
S&P 500 Index
<$1
>=$1
$0.49
$0.58
VIX and VIXW (Simple Order)
CBOE Market Volatilty Index
CBOE Market Volatilty Index
CBOE Market Volatilty Index
CBOE Market Volatilty Index
<=$0.10
$0.11-$0.99
$1-$1.99
$2+
$0.10
$0.25
$0.40
$0.45
VIX and VIXW (Complex Order)
CBOE Market Volatilty Index
CBOE Market Volatilty Index
CBOE Market Volatilty Index
CBOE Market Volatilty Index
<=$0.10
$0.11-$0.99
$1-$1.99
$2+
$0.10
$0.25
$0.40
$0.45
XSP
Mini-SPX Index
<10 contracts
>=10 contracts
$0.00/$0.04

*Fees are still applied by certain regulatory agencies. Webull does not profit from these fees.

Free Real-time Index Data

Webull is now partnered with Cboe to provide the Cboe Global Indices Feed. You can utilize these real-time market indicators to track options market changes.

To celebrate this partnership, Webull is currently offering a free subscription to registered members.

Learn more about the Cboe Global Indices Feed

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Disclosure：

Option trading entails significant risks and is not suitable for all investors. Only eligible accounts may trade options. Investors can rapidly lose their entire investment in a short period of time and incur permanent loss beyond their initial deposit. Please read the Characteristics and Risks of Standardized Options before trading options. Regulatory and Exchange fees apply to options trades. If you want to know more details related to options trading, please go to Options Trading FAQ of Help Center.