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Available Options Strategies

We offer up to four options trading levels. Cash accounts (including IRAs) can trade up to level 2. Margin accounts have access to apply for up to options level 4. The following displays what strategies can be traded at each options level:


Level 1

  • Covered Calls
  • Buy-Writes
  • Cash-Secured Puts

Level 2

Level 1 strategies as well as:

  • Long Calls
  • Long Puts
  • Collars
  • Protective Puts
  • Protective Calls (margin account required)
  • Covered Puts (margin account required)
  • Long Straddles (margin account required)
  • Long Strangles (margin account required)

Level 3

Level 1-2 strategies as well as:

  • Credit Spreads
  • Debit Spreads
  • Long & Short Butterflys
  • Long & Short Iron Butterflys
  • Long & Short Condors
  • Long & Short Iron Condors
  • Back Ratio Call Spread
  • Back Ratio Put Spread

Level 4

Level 1-3 strategies as well as:

  • Naked Equity Calls
  • Naked Equity Puts
  • Naked Index Calls
  • Naked Index Puts
  • Front Ratio Call Spread
  • Front Ratio Put Spread

For a brief description of each strategy, please navigate to options strategies explained.


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Please note, calendar spreads and diagonal spreads are not available for VIX.


What are the requirements to trade spreads?

Trading spreads requires a margin account with level 3 options approval and a minimum account balance of $2,000.


What should I know about options level 4?

Options level 4 permits uncovered selling of both calls and puts. Due to the nature of these strategies, specific requirements must be met to initiate these trades:


  1. A minimum net asset value of $10,000.
  2. Sufficient buying power to cover the potential maximum loss from the position.

Please note that level 4 strategies are only available for stocks that are part of the S&P 500.


Obligations and disclosures to acknowledge:

Clients are expected to close any near-the-money, at-the-money, or in-the-money option positions prior to the close on expiration date, if they do not intend to exercise them or do not have the equity in their account to support the exercise. Open options positions will be liquidated by Webull if they’re near-the-money, at-the-money, or in-the-money upon expiration and there is not enough overnight buying power in the account to support the exercise. This applies in both margin accounts and cash accounts.


In-the-money options will be exercised automatically after market close on the expiration date, unless the client has submitted a Do Not Exercise request (DNE). These requests may be submitted through our mobile app. The cut-off time for submitting DNE instructions is up until the close on expiration date. Early exercise requests must be given at least one business day prior to the expiration date no later than 30 minutes after market close. Any exercise requests submitted after that time will be processed on a best-effort basis.


For Long Puts in a cash account, options may not be exercised if there are no underlying long shares to offset the entire exercise. For Long Puts in margin accounts that do not hold the underlying shares, an exercise may be allowed if the account can support the resulting position.


To learn more details about the terms and conditions of options trading on Webull, please read the Webull Option Agreement.



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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