Webull launches Cboe’s variety of S&P 500 options for retail traders

Rick Steves

Cboe’s Index options offered by Webull are European-style (cannot be exercised before expiration), and cash-settled (no delivery or assignment of underlying shares) so trader accounts are credited/debited in cash.

Webull has announced it will offer Cboe’s new Nanos S&P 500 Index options at launch on its trading platform in Q1 2022 as the leading retail brokerage platform with a growing global presence finds options as a valuable instrument at this point in time.

Customers who are approved to trade options on Webull’s platform will gain access to the offering, which underscores the US broker’s commitment to providing the retail trading community with access to new options products, data, and educational resources.

The broker has already gone live with Cboe’s popular S&P 500 Index (SPX) options, Cboe Volatility Index (VIX) options, and Mini-S&P 500 Index (XSP) options. Earlier this year, Webull began providing connectivity to Cboe’s U.S. equities markets.

The utility of index options for retail traders

Ed Tilly, Chairman, President and Chief Executive Officer of Cboe Global Markets, said: “We are pleased Webull is bringing Cboe’s product offerings to its trading platform and introducing the utility of index options to its retail traders. Webull shares our deep commitment to empowering retail investors through delivering education, product innovation, and broadened access to the markets, so that a greater universe of traders can learn about the potential benefits options provide.”

Anthony Denier, Chief Executive Officer of Webull Financial LLC, commented: “We are excited to collaborate with Cboe to educate our customers on the usability and benefits of index options. Through this partnership, our customers can now trade Cboe’s proprietary index options products for the first time. Additionally, Webull customers will be among the first traders to be able to access Cboe’s new Nanos product as we are focused on empowering the individual trader with new opportunities and lower costs.”

Webull is giving its retail customers access to cash-settled index options trading and an additional choice on what they can trade by including the upcoming Nanos S&P 500 Index options (ticker: NANOS), which is a smaller and simpler options contract tailored to investors’ account size, experience levels, and investment objectives.

The new and smaller-sized Nanos SPX options are 1/100th the size of an XSP option, the Mini-S&P 500 Index (which is 1/10th the value of the S&P 500 Index) options contract.

SPX and VIX options are typically used for risk management, hedging, asset allocation, and potential income generation strategies as they provide exposure to the broad U.S. market and global equity market volatility.

Webull will also include a free subscription to CSMI (Cboe Streaming Market Indices) powered by Cboe, providing real-time SPX, XSP, and VIX index values that allow customers to track option market changes.

CME Group’s Index options offered by Webull are European-style (cannot be exercised before expiration), and cash-settled (no delivery or assignment of underlying shares) so trader accounts are credited/debited in cash.

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