Overview of Index Options Strategies Supported on Webull

Do you know what strategies are supported in trading 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. Unlike Equity/ETF options, they are cash-settled and mostly European style (exercised only at expiration).

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What Index Options do We Offer?

⭐Options on Broad Market Indices

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⭐Option on Volatility Indices

Note: Volatility index options are highly speculative in nature and not appropriate for every investor to trade. Please educate yourself on them before trading.

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Available Strategies in Real Trading

Because each option strategy carries an inherent risk and return profile, every investor should fully understand the risks involved before trading index options.

  • Level 1 option account investors can sell cash-secured puts to generate income in their portfolio.
  • Level 2 supports options buying strategies – buying calls or buying puts.
  • More multi-leg options strategies are available if you have a Level 3 margin account.

The chart below provides detailed info on strategies supported at each option level.

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Index Options in Paper Trading

You can simulate index options trading with Webull paper trading! Currently, the following three strategies are supported in index option paper trading:

  • Buying Calls
  • Buying Puts
  • Selling Cash Secured Puts

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Disclaimer: All trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations

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Disclaimer: Options are risky and not suitable for all investors. Investors can rapidly lose 100% or more of their investment trading options. Before trading options, carefully read Characteristics and Risks of Standardized Options, available at Webull.com/policy. Regulatory, exchange fees, and per-contract fees for certain option orders may apply.