What is an option?

An option is a contract between a buyer and a seller. It gives the buyers (the owner or holder of the option) the opportunity to buy or sell the underlying asset at a specific strike price prior to or on a specified date. Options can provide investors with more opportunities than traditional equity buy/sell strategies.

What are the Advantages and Risks of Options?

1. Options are cost efficient with great leveraging power. As such, an investor can obtain an option position similar to a stock position without actually trading the stocks themselves, but with much more volatility risk.
2. Options are a popular way to hedge your positions, but when not properly understood by investors they can pose a high risk of loss.
3. Options have the potential to deliver higher percentage returns and losses.
4. Options provide a strategic alternative to just investing in equity. There are many ways to use options to recreate synthetic positions; however, there are many risks associated with trading options and educating yourself is very important.

Can I trade complex option strategies on Webull’s desktop?

Yes. Advanced options strategies can be traded on the desktop version, mobile app, and the web version.
1) Download the latest Desktop version
2) Open the option chain of a specific symbol
3) Select the strategy or strategies you wish to employ on the top left. You can change the option strategy in the mobile app on the bottom left-hand side of the page when viewing the options chain.