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$0 per contract and $0 base
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Webull is one of the lowest-cost brokerage firms for options trading. Its pricing is very tough to beat:
there is no base commission, no per-contract fee, and no assignment or exercise fee.
There is one exception to this pricing: $0.50 per contract for certain index options and $0.10
per contract for oversized option orders. This low-cost setup is a major advantage for clients who don’t want their
profits reduced by commissions.
Another big advantage of Webull is its low margin rates: from 4.74% for very large debits to 8.74% for balances under
$25k. That’s between 2 and 4 points below most other brokers, and this lower rate can make it easier to use leverage to
boost returns.
It’s possible to add options trading using the mobile app.
Tap the Webull logo at the bottom center, then tap Account Management in the top right, then
Option Trading Level, and then Apply for Options Trading. Just follow the instructions and
you should be ready to trade within a day.
Read full Webull options trading review »
3.5% match on contributions and $20 stock bonus with $500 deposit at Webull.
Visit Webull Website
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$0 per contract and $0 base
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If you trade stocks or options at Robinhood, you probably already know that the broker offers free trading for all supported securities. Commission-free options trading is still fairly uncommon in the industry, and it is a major benefit for traders using multi-leg strategies.
Creating multi-leg options positions at Robinhood gives you more flexibility in your trading. You can reduce the cost of expensive stock options, try to profit from price moves, or use time decay in your favor.
Whether you trade credit spreads, debit spreads, butterflies, condors, or calendars, spreads can help you fine-tune your strategy.
Fees and Commissions
Before getting into the available strategies, it’s worth pointing out that Robinhood is one of the few brokers that lets you trade spreads with zero commissions. This is very useful for investors setting up multi-leg trades.
Types of Multi Leg Options at Robinhood
Robinhood supports several multi-leg options strategies. What you can trade depends on your options trading permission level.
Multi-leg options trading becomes available at Level 3.
Here are the multi-leg strategies you can trade at Robinhood:
- Credit Spreads
- Debit Spreads
- Calendar Spreads
- Diagonals
- Iron Condors
- Iron Butterflies
- Butterflies
- Unbalanced Butterflies
- Broken Wing Butterflies
- Straddles and Strangles
Let’s go over how to create and manage a multi-leg trade.
Open Robinhood Account
3% deposit match and FREE stock worth up to $200 at Robinhood.
Visit Robinhood Website
Placing a Multi Leg Options Trade
When creating a multi-leg trade, you’ll choose between two and four legs. You can combine ‘buys,’ ‘sells,’ ‘calls,’ and ‘puts’ in almost any way you want. You can also choose different expiration dates for each leg.
The colors on the screen update in real time, switching between red and green depending on whether the calls or puts are gaining or losing value.
Using the building blocks of ‘buys,’ ‘sells,’ ‘calls,’ and ‘puts,’ you can create the strategy you want.
Here’s an example of creating a Put Butterfly on a well-known tech stock.
First, choose the contracts and expiration dates. By switching between buy and sell, you set up both long and short legs.
You will notice that you can’t enter contract quantities yet. That comes later.
After choosing the contracts, go to ‘Custom’ to adjust the number of contracts for each leg. You can ‘set a unique ratio’ for each part of the position.
In this example, we add one short put to build the butterfly. The profit/loss chart will update to show the expected risk and reward.
When everything looks right, click ‘Continue’ (green button) to go to the order review screen.
Free Robinhood Account
3% deposit match and FREE stock worth up to $200 at Robinhood.
Visit Robinhood Website
Managing Multi Leg Positions
Managing multi-leg options positions is simple, but there are a few things to remember.
This can include adding to a position, closing a position, or adjusting the legs in different ways.
The most important factor is how your changes affect the margin requirement. Adding or removing a leg can change how much risk the broker needs to cover.
Robinhood does not allow ‘naked’ options at any level. If you remove a leg, the remaining parts must still be properly covered.
Legging In and Out
Some traders like legging in and out to lock in gains and move into a new spread without closing the full position.
For example, if you buy a call and it becomes profitable, you can sell another call against it to create a debit spread instead of closing the position.
If the price drops, the debit spread will usually lose value more slowly than a single call would.
You may still keep some upside as well.
Closing the Position
Closing parts of a multi-leg strategy can be limited. The easiest way is to close all the legs at once. You can also close only short legs, which won’t increase margin risk.
Robinhood Multi Leg Options Pros and Cons
Robinhood has significantly improved its options platform. It now supports many advanced strategies, giving traders a more hands-on approach with opportunities in different market conditions.
There are still some areas that could be improved. Here are our thoughts on the main pros and cons.
Pros
- Option chains are easy to read
- Choosing contracts is simple
- Profit/loss chart is useful
- Wide range of multi-leg strategies
Cons
- Trade fills for complex orders can take time
- No naked options allowed
- Manually adding legs takes longer
- Adjusting contract quantities requires an extra step
Robinhood Multi Leg Options Summary
Overall, Robinhood is a strong platform for trading multi-leg options. Its spread-trading tools let investors take positions on expensive stocks, manage risk, benefit from market swings, and more. While there is still room for improvement, most options traders will find the features they need to build strategies that fit their goals.
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How to Trade Options Before Earnings or News Release
Picking a simple strategy before earnings can be tricky. Many traders just buy calls or puts; some buy both (a straddle or strangle) hoping a big move in either direction brings profit.
Limited Risk – High Reward
Buying calls or puts limits risk to the premium paid. If an Apple call costs $100, the most you can lose is $100, with room for a larger gain if Apple moves sharply.
The challenge is that demand for options climbs before earnings, driving premiums much higher. Protection buyers and speculators crowd the market, raising prices.
Being the Bookie
Over time, the party taking bets usually wins. Costly options favor sellers. After earnings, demand and premiums drop, so even well-hedged buyers struggle to profit once the “unknown” premium disappears.
The obvious answer is to sell options—but naked selling carries unlimited risk few traders (or brokers) will accept.
Credit Spreads
To capture rich premiums while capping risk, many traders use “bull put credit” or “bear call credit” spreads. Search online for setup details; this guide focuses on squeezing the most profit from those spreads by unwinding them.
Unwound
Once earnings hit and the market digests the news, option prices snap back to normal. Closing the spread then locks in the premium collected before the announcement. It will not work every time, nor make a fortune on its own, but it can succeed often enough to add worthwhile profit.
Updated on 3/4/2026.
Arthur Chachuna is a professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 25 years, and has a background in both applied math and programming.
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