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How to Trade Options on Webull

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Written by Timothy Sykes
Updated 4/20/2023 6 min read

Learning how to trade options on Webull is a good choice if you’re looking for a Robinhood alternative…

Webull is a user-friendly online stock broker with a sleek mobile app. It also provides no commission or contract fee options trading, just like Robinhood.

Like Robinhood, Webull limits the range of OTC stocks you can access… but we’re not talking about OTCs today. Anyway, there are no brokers that are 100% good or bad. There are just brokers that work for you and ones that don’t. That’s why it’s important to find the options broker that’s right for you.

Is Webull a good broker for options trading? Let’s dive deeper so you can make an informed decision.

Options Trading on Webull

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Webull offers a robust trading app for stock option traders. Here are some of this online broker’s best features:

  • No options contract fees or commissions
  • Free real-time market data
  • A sleek and intuitive interface
  • Web, desktop, and mobile platforms
  • Assistive features for users with cognitive disabilities and visual impairments

Want to know about other options trading brokers? Check out my guides to Questrade and TD Ameritrade.

Benefits of Trading Options Using Webull

What makes Webull a popular choice for options traders? Here are some of its benefits:

Good for Beginner and Intermediate Traders

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Webull’s educational resources aren’t the most complete. But it’s got a wider appeal, catering to both beginners and more advanced traders.

You can find advanced tools like technical indicators and in-depth charting on Webull. They’re all presented with a user-friendly interface.

That means beginners can easily learn the basics. Meanwhile, experienced traders can get right into the app after a small learning curve.

No Minimum Deposits

Like most other brokers, Webull requires no minimum deposits.

Virtual Options Trading Platform

Webull offers a paper trading options platform. This means you can practice trading without risking real money.

Paper trading platforms don’t teach you the emotional control you need when real money is on the line. But they’re a great way to get your feet wet and get some initial trading experience, as well as hone new strategies.

No Commission or Contract Fees

Like most of its peers, Webull boasts commission-free trading. Unlike most, you don’t have to pay contract fees on options either.

Robust Mobile App

Unlike most brokers, Webull’s mobile app was designed before its other platforms. That makes it easier to trade on the go than other mobile apps, which are basically scaled-down computer programs.

If you’re in the market for a powerful desktop trading platform, try StocksToTrade. It’s my favorite trading platform (and the one I helped design).

Give StocksToTrade a try today — a 14-day trial is only $7!

Steps to Start Trading Options on Webull

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Here’s a simple four-step guide to start trading options on Webull:

1. Open a Webull Account and Upload Funds

The first thing to do is sign up for Webull on the website or mobile app.

There’s no minimum deposit, but you’ll want some cash to get started.

2. Apply for Options Approval

Only eligible accounts qualify for trading options. You’ll need to fill out an options trading application. This application measures your investing experience and financial situation.

Webull will assign you a trading level based on the application. You can’t upgrade your trading level directly, though. You need to re-apply and go through the approval process again to level up.

Learn more about how trading options works in this guide.

3. Hit the “Options” Tab

Accessing options trading in the app is easy. Just enter the stock’s details menu, then select the Options tab. It’ll take you to the options chain of your selected stock.

4. Start Trading Options

Got your trading account approved? Time to start trading! As always, these trading rules still apply:

  • Learn from successful options traders
  • Don’t copy other traders’ options trades
  • Make your own watchlists and stock picks
  • Record and review every trade to refine your trading strategy

Learning from experienced traders is one of the best ways to learn all of the rules.

If you’re searching for a mentorship program, check out my former student Mark Croock’s Evolved Trader. He’s taken my penny stock strategies and applied them to options trading — making $3.9 million in career earnings in the process!

Here’s a sneak peek of Mark’s curriculum:

Sign up for the Evolved Trader program today and start your journey towards becoming a self-sufficient options trader!

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”