Table of Contents
Introduction
Stock options allow investors to buy or sell a stock at a predetermined price within a set timeframe. Trading options via a mobile app like WeBull offers convenience and flexibility. This article provides a step-by-step guide to trading stock options on the WeBull mobile platform.
Getting Started with Stock Options on WeBull
To trade options on WeBull mobile app, you first need to:
- Set up a WeBull account and get approved for options trading
- Fund your account with enough capital to purchase options contracts
- Enable options trading on your WeBull account
- Familiarize yourself with options trading basics
To set up a WeBull account:
- Download the WeBull app on your mobile device
- Provide your personal details to create an account
- Submit an application for options trading approval
To get approved for options trading:
- Take the options trading test in the WeBull app
- Get approved based on your options trading experience and account balance
To fund your WeBull account:
- Link your bank account and initiate a bank transfer
- Deposit enough funds to meet options trading minimums
To enable options trading:
- Go to Profile > Brokerage Account > Trading Permissions
- Toggle on “Option Trading” to activate options trading
How to Buy and Sell Options on WeBull
Once your account is options-ready, you can start trading stock options on WeBull mobile app.
Finding an Option
Use the search bar to look up a stock. Tap on the stock name and navigate to the Options tab. Here you will find call and put options contracts available for that stock.
Steps:
- Enter stock ticker in the top search bar
- Select the stock from dropdown results
- Tap “Trade” button
- Swipe left and select “Options” tab
Analyzing an Option
Study the option contract details before trading it. Check the strike price, expiration date, bid-ask spread, volume, and your maximum profit/loss.
Key details to analyze:
- Strike price
- Expiration date
- Bid-ask spread
- Volume
- Break-even points
- Maximum profit/loss
Use tools like payoff graphs and profit calculators to evaluate your trade.
Placing an Options Trade
Once you have analyzed the contract, you can place a buy or sell order.
To buy an option:
- Tap “Trade” button
- Select option type – Calls or Puts
- Choose contract by expiration date & strike price
- Enter number of contracts
- Set limit price or choose market order
- Review order & tap “Submit”
To sell an option:
Follow the same steps. Make sure you already own the contracts if selling.
Monitoring an Options Position
Use the WeBull app to monitor your options in real-time. Check the current value of your contracts as stock prices fluctuate.
Tap the Account icon > Positions to view unrealized and realized gains/losses on options. Manage or close positions before expiration to book profits or reduce losses.
Exercising an Options Contract
As expiration approaches, decide whether to exercise long contracts or let them expire.
To exercise a call option:
- Buy 100 shares of the underlying stock per contract at the strike price
- Instructions will appear in the WeBull app as expiration nears
To exercise a put option:
- Sell 100 shares of the underlying stock per contract at strike
- Follow prompts in the WeBull app
Advanced Options Trading on WeBull
Once you grasp basic options trading, try advanced strategies for potentially bigger returns.
Spreads
Spreads limit potential losses while capping profits. Common spreads are:
- Bull Call Spread: Buy lower-strike call + sell higher-strike call
- Bear Put Spread: Buy higher-strike put + sell lower-strike put
Combinations
Combine options on the same underlying stock to form a strategy. Examples are:
- Straddle: Buy ATM call + buy ATM put
- Strangle: Buy OTM call + buy OTM put
- Collar: Buy stock + sell OTM call + buy OTM put
Use the Options Playground in WeBull to model these strategies.
Tips for Options Trading Success
Apply these best practices when trading options on WeBull mobile:
- Start small – only invest what you can afford to lose
- Use limit orders for defined entry/exit points
- Set stop losses to control potential downside
- Monitor positions closely as expiration nears
- Understand tax implications of options trading
- Use paper trading to test strategies risk-free
With the convenience of the WeBull app, options trading is at your fingertips. Follow these steps and tips to effectively trade stock options and diversify your investments.
