It also frees up cash for other strategies and positions. Call option sellers and put option buyers both think that a stock will decline. What strategies can get you there? Selling puts on Webull (cash secured puts) can be a great way to generate some extra income every single week. Protect Your Options Position by Using the Take-Profit and Stop-Loss Order Feature! Advisory accounts and services are provided by Webull Advisors LLC (also known as "Webull Advisors"). Webull and Charles Schwab are both online investment platforms, but they have quite different backgrounds. Webull Financial LLC is a member of the Financial Industry Regulatory Authority ( FINRA ), Securities Investor Protection . Accessing option trading via the Webull mobile app. What is Webull? The extendedhours markets allow investors to place trades when the actual exchange is closed. How do you access a contract quotes page? The Straddle view is the default display, but you can also set the chain to display as List view to fit your desired trading style. You will need to provide basic personal and financial information, such as your name, address, Social Security number, and bank account information. It is important for investors to understand the capital risk associated with options contracts and weigh their risk tolerance before making the decision to invest. Webull enables options traders to make choices by providing transparent, easy-to-understand real time prices, and charges $0 commissions on stocks, ETFs, cryptos, and equity/ETF options. The strike price is the price at which the option can be exercised. Most stock options have several dates and strike price alternatives to choose from. Approval is based on your financial resources, investing experience, and risk tolerance, as well as your understanding of investment objectives and the risks and characteristics of options. Today he is a marketing technology expert and founder with 12+ years of experience developing high-performance web applications and digital experiences. There is, however, the risk of the value of the portfolio being hit by a short-term market correction. A deposit of $100 or more gives you a share of stock with a value of $8 to $1,600. If the stock then trades up to $60, the investor can sell the call option for $10.00, making a profit of $8.00 per share ($2.00 x 4 = $8.00). There are many options out there, and it isn't all about picking the option with the most bells and whistles - you have to choose the one that financial sense to you. This will then take you to the options chain of the stock youve selected. Click Done at the bottom of the summary screen. Once youve decided to trade options on Webull, the next step is to select the option contracts you want to trade. Options trading entails significant risk and is not appropriate for all investors. An option is a contract between a purchaser and a seller. Expiration Type: Regular, Weeklys, and Quarterlys. For your first options contract, it is recommended that you choose a single option. You must decide if a stock will move higher or lower from the purchase date to the expiration date. Interactive Brokers vs. Webull 2023 - Investopedia Before you make a selection, its important to research the option contracts and their respective risks. To get the most out of the Webull suite of features, it is recommended to download the Webull app for desktop, which is compatible with Windows, Mac and Linux operating systems. Extended investing hours: Many brokers allow retail investors to trade only during the standard market hours of 9:30 a.m. EST to 4 p.m. EST. Once youve selected the type of option and the strike price, you are ready to place your order. Keep in mind that while diversification may help spread risk, it does not assure a profit or protect against loss in a down market. 4) Easily place a trade for an options contract. Webull Review 2023: Pros, Cons and How It Compares Before you start trading options on Webull, youll need to know the different types of options that are available. Crypto trading only available to US residents. Thinking about trading options or stock in Shockwave Medical The free stock share you receive in either promotion is determined by random selection using Webulls lottery system. Approval for options trading at Webull is based on an application you complete that gauges your product knowledge, financial resources, risk tolerance and investment experience. Additionally, you should use fundamental analysis to understand the underlying stock and make the best decisions around when to enter and exit your option contracts. On a desktop browser, click on the "show" symbol to the right of "options." Choose a Strike Price and Expiration Date One of the key aspects of an option is its strike price. This is an amber warning to beginners, as option tradingis usually regarded as being more appropriate for more experienced investors and isnt promoted to those who are taking their first steps in trading. This type of contract is typically traded to generate profits when the underlying shares increase in value. Webull provides two list views for options chains: List view and Straddle view. The coverage limits provide protection for securities and cash up to an aggregate of $150 million, subject to maximum limits of $37.5 million for any one customers securities and $900,000 for any one customers cash. Being out-of-the-money also makes them relatively cheap to buy. Yeah, as said above, just click the option in your positions, and click sell, then set limit or whatever and sell. When you come to convert your options for the underlying Amazon stocks, youll be doing so at a better price than can be found in the open market. Tap on "More." Tap on "Options Trading." Explore . Here is a good video that goes over what they are looking for: This is what I changed my answers to after being "too honest" the first time around. Tap on the Webull icon. The Financial Industry Regulatory Authority (FINRA) requires each member to pay trading activity fees for the sale of covered securities. When youre working out how to buy options on Webull, its important to remember that Puts and Calls work in the opposite direction but might have the same strike price.