Webull Options Trading Levels
If you're looking for a good platform to trade options, Webull is a strong contender. The platform offers several unique features that can help traders gain an edge. With zero commissions on options trades, detailed options chains, and advanced charting and data, Webull creates opportunities for profitable options strategies.
Let’s break down the details of Webull's options trading to help you decide if it's the right broker for you.
Approval Levels
To start trading options on Webull, new users need to apply for approval. There are several levels of options trading permissions, each offering different capabilities and risk exposure.
The application process is simple. You'll need to answer a few questions about your demographics, risk tolerance, income, experience, and investment objectives. Based on your responses, Webull will determine which level of options trading is appropriate for you.
The decision usually takes a day or two, and once approved, you can start trading immediately.
It’s also important to note that the decision isn't final. You can apply to upgrade or downgrade your permissions at any time, which can be useful if you feel you’ve taken on too much risk or not enough.
There are various factors to consider when choosing the best options trading level, and traders should carefully review the differences between them.
Here’s how Webull classifies the different levels of options trading.
Webull Level 1 Options
Level 1 is the most basic level. Traders with Level 1 approval can buy long calls and puts. They can also write covered calls and cash-secured puts.
Webull Level 2 Options
Level 2 provides access to everything in Level 1, plus the ability to trade long straddles and strangles. Covered puts, protective puts, and collars are also available at this level.
Webull Level 3 Options
At Level 3, traders can sell options on margin. Spreads become available, including credit spreads, debit spreads, iron condors, butterflies, iron flies, and more. Many serious options traders aim for Level 3 or higher.
Webull Levels 4 and 5 Options
Levels 4 and 5 are not yet available, but traders can apply early for approval to trade at these levels. Once available, Level 4 will allow traders to write naked calls and puts on ETFs, while Level 5 will allow this on Indexes.
Cheapest Broker For Options
Advanced Options Strategies
As you can see, the types of strategies available at different permission levels vary. Since most traders will probably go for Level 3 permissions, there are a few things to know about trading spreads on Webull.
One thing to note is that spread trading isn't yet as straightforward as it could be. Traders using the web-based platform who want to trade advanced strategies (multi-leg strategies combining both long and short options) will need to "leg into" their positions.
Legging into complex positions is definitely a good way to implement different strategies, but traders should understand how margin requirements work when doing so. For example, it’s best to enter a long position first, then sell (write) against it. By following basic “order of operation” techniques, traders can maximize their use of Webull’s options trading features.
On both the desktop and mobile platforms, there are many more features for spread selection. You can choose from a wide variety of available strategies and then select the strikes you're happy with.
Multi Leg Options
Learn more about Webull multi-leg options.
Notable Trading Tools for the Active Trader
For active traders, Webull offers several notable tools. Here are a few of the most important tools available to options traders.
PnL graph – The PnL graph shows a visual representation of the expected value of a position relative to changes in the value of the underlying asset, time decay, and other factors. With this graph, traders can quickly see when a specific strategy will either profit or lose.
Option Contract Charting – In addition to the great charting Webull offers, there's another useful feature many options traders use on the desktop platform. By clicking “Percent Change” in the options chain, you can display the chart for the specific option contract. This “quick view” helps traders find better entry and exit points for their trades.
Fees and Commissions
Another reason to choose Webull for options trading is that there are no fees for buying or selling options, and no fees for exercise or assignment. This is rare in the options market, where most brokers charge at least $1 per contract on each side of the trade.
For traders who buy and sell many options contracts, these fees can quickly add up. But with Webull, you’ll never pay to open or close an options trade.
Pros and Cons
Here are some key advantages and considerations when it comes to trading options on Webull.
Pros
- Excellent charting features
- Helpful auto-exercise toggle
- Support for multi-leg strategies
- Multiple permission levels to choose from
- No commission or exchange fees
Cons
- Some inconsistencies between mobile, web, and desktop platforms
- Not all trading levels are available yet
Updated on 1/22/2026.
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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