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).

What Index Options do We Offer?

⭐Options on Broad Market Indices

⭐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.

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.

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

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.