Webull Options Trading Levels
If you are looking for a good broker for options trading, Webull is usually one of the top names to consider. The popular broker offers many useful features designed to help traders sharpen their edge. Zero commissions on many options trades, detailed options chains, and advanced data feeds and charting all come together to support a wide range of options strategies.
Let’s go over the details of options trading at Webull to help you decide whether Webull should be your broker of choice.
Approval Levels
The first thing to know about trading options at Webull, is that new traders need to apply for permission first. There are several levels of options trading approval that traders can apply for, and each tier comes with added capabilities and different risk profiles.
The application process is straightforward. Investors should answer a series of questions pertaining to their demographics, risk appetite, income, years of experience, and investment goals. Based on the answers given, Webull makes a determination about which level of options trading is most suitable.
The decision generally comes with a day or two, and once a permission for a particular trading level is granted, trading can commence immediately.
One thing to keep in mind is that the decision is not final. Investors can, at any time, apply for either an upgrade or a downgrade in their permissions. This is especially useful for traders who decide that they have either exposed themselves to too much risk or not enough.
There are many factors that go into choosing the ideal options permission level and traders should consider the differences between them carefully.
Here is a breakdown of how Webull classifies each of the available levels.
Webull Level 1 Options
Level 1 is the most basic, as you would expect. Traders with this permission can trade covered calls, buy-writes, and cash-secured puts.
Webull Level 2 Options
At Level 2, traders get everything in Level 1 plus long calls and puts. Collars and protective puts are also available, while protective calls, covered puts, long straddles, and long strangles require a margin account.
Webull Level 3 Options
At Level 3, spread trading comes into play. Spreads are possible at Level 3, including credit spreads, debit spreads, butterflies, iron butterflies, condors, iron condors, and back ratio spreads. Many serious options traders request Level 3.
Webull Levels 4 and 5 Options
Level 4 is currently available, although it is limited to margin accounts and comes with higher risk. Traders approved for this level can trade naked equity calls and puts, naked index calls and puts, and front ratio spreads. Webull does not currently list a Level 5.
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Advanced Options Strategies
As you can see, the types of strategies available to options traders at different levels varies quite considerably. Since most traders will likely opt for Level 3 permissions, there are a couple of important things to note about trading spreads at Webull.
For one thing, spread trading is not yet available on the web-based platform. Traders who want to trade advanced options strategies (multi-leg strategies combining long and short options) need to use the mobile app or desktop platform instead.
Building advanced positions is certainly possible at Webull, but traders should understand how the margin requirements work while doing so. For example, it is often safer to go long first and then sell against a position. By following some simple order-of-operation techniques, traders can make better use of Webull’s options trading tools.
Using the desktop trading platform or the mobile app, there is much more functionality where spread selection is concerned. Users can choose between a wide range of available strategies before selecting the strikes they are happy with.
Multi Leg Options
Learn more about Webull multi leg options.
Notable Trading Tools for the Active Trader
When it comes to tools for the active trader, Webull has a lot to offer. Here are a few of the most notable tools available to options traders.
PnL graph – The PnL graph populates a visual representation of the expected value of a position in relation to the value change of the underlying, time, and a few other factors. Using the graph, traders can quickly see exactly when and where a particular strategy will be in either profit or loss.
Option Contract Charting – Apart from the excellent charting provided by the Webull platform, there is another interesting feature that many options traders using the desktop platform like to take advantage of. By clicking ‘Percent Change’ in the options chain, the chart in the options trading layout displays the chart for that particular options contract. While this can be viewed manually at any time, the ‘quick view’ that is possible for each of the contracts and spreads available in the chain provides valuable insights. Using this information makes it easier for traders to find better entries and exits for their options contracts. Definitely a valuable feature.
Fees and Commissions
In addition to all of the other reasons traders might want to use Webull for their options trading, there are no commissions for trading listed U.S. stock and ETF options, although certain index-option fees, oversized-order fees, and regulatory or exchange fees can still apply. This is still quite unusual in the options world, with many brokers continuing to charge at least some per-contract costs.
For traders who buy and sell a lot of options contracts, these costs can add up quickly. At Webull, however, there is no standard commission for most listed options trades, although some options-related fees can still appear when putting on or taking off a trade.
Pros and Cons
There are some notable benefits when it comes to trading options at Webull. There are also some considerations to take into account. Here is a short list of pros and cons to help you decide if Webull is right for you.
Pros
- Excellent charting
- Auto-exercise toggle is very useful
- Multi-leg strategy support
- Multiple ‘risk’ levels to choose from
- Zero commissions on many listed options trades
Cons
- Some inconsistencies exist between mobile, web, and desktop
- Advanced options are not supported on the web version
Updated on 3/30/2026.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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