Trading Options at Moomoo
Key Takeaways:
• Traders at moomoo can buy and sell option contracts.
• Option trades in a moomoo account may have fees in some cases.
• Moomoo’s software includes advanced tools for options trading.
If you trade derivatives, moomoo is worth considering. The brokerage offers excellent options tools with very low fees.
Overview of Options at Moomoo
Besides stocks and exchange-traded funds (ETFs), moomoo gives access to the options market. This service is available to U.S.-based clients and traders in some other countries. This article focuses on U.S. trading.
Applying for Options Trading
The first step to start trading options at moomoo is to apply for the ability to trade options. Not all accounts are set up for options by default.
You can apply for options when you first open an account or add it to an existing account. To apply on the mobile app, tap the Accounts icon in the main menu at the bottom. On the Accounts page, tap the Option Level icon. Here, you can request to trade derivatives.
Researching Options
Moomoo offers a lot of information on options contracts. While you can't trade options on the website, you can view data about contracts. To access this, go to the Market Analysis tab at the top of the website and click on the options market link. Here, you can see open interest and volume for active stocks.
The mobile app provides even more data. On the app, go to a stock's profile and tap the Options tab in the middle of the page. On the desktop, you can view option chains by following the same steps.
Examples of options information on the app include:
• Volume by strike price
• Open interest by strike price
• Volatility analysis
• Volatility term structure
• Unusual activity
• Volatility smile
How to Trade Options at moomoo
Both the mobile app and desktop program have built-in option spreads. Click on the spread you want, and the trade form will fill out automatically. You can also trade individual calls and puts, and both platforms allow custom orders with up to 4 legs.
On the desktop, a dropdown menu for Single Option is shown by default. Select this to trade a single contract. To trade a spread, choose the desired spread from the dropdown menu. A brief description is provided for each spread type.
On the mobile app, the same menu is at the bottom of the chain page. On either platform, click on the bid or ask price to open the order form. Check the trade details and submit the order when ready.
The website offers simulated trading for options contracts, which is great for beginners. Go to the Features tab and select paper trading.
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Cost of Trading Options at moomoo
U.S.-based moomoo accounts do not charge commissions or per-contract fees for equity option trades. However, index options have a 50¢ per-contract fee from moomoo. Additionally, the CBOE charges its own fees for some index options, ranging from $0.00 to $0.66 per contract.
Moomoo Options Trading Recap
Moomoo offers options trading with many great features at very low costs. Both beginners and experienced traders will find plenty to like.
Updated on 1/1/2025.
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