WeBull is a popular commission-free trading platform that offers users the ability to trade stocks, ETFs, and options. Here is a guide on how to trade and buy stock options on WeBull.
Table of Contents
Getting Started with Options Trading on WeBull
Before you can start trading options, you need to apply and get approved for options trading. Here are the steps:
- Open an account – Sign up for a WeBull account if you don’t already have one. Make sure to choose a cash or margin account.
- Get approved – You will need to fill out an options trading application and get approved. WeBull will assess your trading experience.
- Fund your account – Deposit money into your WeBull account to cover any options trades you want to make.
Once approved for options trading, you will have access to tools like options chains, volatility data, and more to help you analyze and trade options.
Buying Call and Put Options
The two main types of stock options are calls and puts:
- Calls – Give you the right to buy the underlying stock at the strike price by the expiration date. You profit if the stock price rises.
- Puts – Give you the right to sell the underlying stock at the strike price by the expiration date. You profit if the stock price falls.
When buying calls or puts, you will pick:
- Underlying stock
- Expiration date
- Strike price
- Number of contracts
For example:
- Buy 5 contracts of Apple (AAPL) January 2025 $200 calls
- Buy 10 contracts of Microsoft (MSFT) March 2024 $250 puts
This allows you to profit if Apple stock goes above $200 by January 2025 or if Microsoft stock falls below $250 by March 2024.
Advanced Options Strategies
In addition to simply buying calls and puts, WeBull offers more advanced options strategies including:
- Bull call spreads – Buy lower strike calls, sell higher strike calls. Reduces cost but caps upside.
- Bear put spreads – Buy higher strike puts, sell lower strike puts. Reduces cost but caps profit potential.
- Iron condors – Sell out-of-the-money call spread and put spread with same expiration. Profits if stock stays between short strikes.
- Straddles – Buying ATM call and put with same strikes and expiration. Profits if big move up or down.
- Strangles – Buy OTM call and OTM put. Cheaper than straddle but needs larger move to profit.
WeBull allows complex multi-leg option orders to implement advanced strategies like condors, butterflies, and more.
Using WeBull’s Options Tools
WeBull provides several useful tools for options traders:
- Options chain – View all available strike prices and expiration dates for a stock. See bid/ask spreads and volume.
- Options scanner – Scan for options based on parameters like volume, open interest, technical indicators and more.
- Risk analysis – Analyze potential profit/loss of an options position at different underlying prices using risk graphs.
- Options analytics – Get Greeks (delta, gamma, theta, vega) and implied volatility data for any option to gauge sensitivity.
These tools help options traders identify trading opportunities and manage option positions.
Options Trading Costs
WeBull offers commission-free online stock, ETF, and options trading. However, some fees may still apply:
- Regulatory fees – Small fees to cover regulation costs. Less than $1 per options trade typically.
- Exchange fees – Small fees charged by the options exchanges. Usually around $0.15 to $0.35 per contract.
- Exercise/assignment fees – $0.65 per contract fee if an option gets exercised or assigned.
So while options trades are commission-free, be aware you need to account for small regulatory and exchange fees.
Getting Help with Options
Options trading involves substantial risk and isn’t appropriate for all investors. Make sure to educate yourself and only trade options if you fully understand the risks.
WeBull provides an options trading handbook and FAQ to learn the basics. There is also options education content available through WeBull Learn to further develop your knowledge.
For any other questions, you can contact WeBull’s customer service department for assistance before placing your first options trades.
