Trade Index Options

1.FAQs

The trading method of index options is the same as stock options. For operation instructions and related information, you can refer to stock options trading. However, as an independent option type, index options have their own characteristics in trading.

Note: When referencing stock options in this article, this also applies to ETF options.

How to trade index options?

Same as stock options, please refer to stock options trading.

What is the minimum trading unit for index options?

Same as stock options, please refer to stock options trading.

What are the trading hours for index options?

Regular trading day:
- 9:30~16:15 US Eastern Time
Last trading day:
- AM-settled index options: 9:30~16:15 US Eastern Time
- PM-settled index options: 9:30~16:00 US Eastern Time

Some options support trading during extended hours (pre-market and post-market extended sessions). Only limit orders and off market orders are supported during extended hours.

The following session information is for reference only. Exchange rules are subject to change. Please refer to the order entry interface for the actual available trading hours.

Type	Examples	GTH (ET)	RTH (ET)	Curb (ET)
A - CBOE Exclusive Indices	SPX/XSP/VIX/RUT	Previous day 20:15 – Current day 9:25	9:30 – 16:15	16:15 – 17:00

Why can't I trade some index options on the expiration date?

Index options contracts have an expiration date and last trading day respectively.

AM-settled index options: The last trading day is the trading day before the expiration date.
PM-settled index options: The last trading day is the expiration date.

Index options can only be traded on or before the last trading day. Therefore, AM-settled index options can't be traded on the expiration date.

SPXW230915C4500000 and SPX230915C4500000 both expire on September 15, 2023. However, the former can be traded on the expiration date and the latter can't.

2.Index Options Order Types

Index options support both single-leg and multi-leg orders.

2.1 Single-Leg Orders

Placing orders for single-leg index options follows the same process for single-leg stock options, with fewer supported order types:

Supported order types: market, limit, stop, stop limit, market-if-touched, limit-if-touched, trailing stop, and trailing stop limit.
Attached orders are currently not supported.

2.2 Multi-Leg Orders

Placing orders for multi-leg index options follows the same process for multi-leg stock options. You can open, close, and roll over option strategies.

However, since the underlying indexes are not tradable, index options support fewer order types for option strategies than US stock options:

Vertical Spread
Straddle
Strangle
Butterfly
Condor
Iron Butterfly
Iron Condor
Calendar Spread
Diagonal Spread
Custom Strategy

3.Index Options Levels

Based on your investing profile and account assets, moomoo assigns your account an options level so you can trade suitable strategies. Options levels provide different trading accessibility to stock and index options. The details are as follows:

Margin Account
Cash Account
Strategies	Level 1		Level 2		Level 3		Level 4
Strategies	Stock Options	Index Options	Stock Options	Index Options	Stock Options	Index Options	Stock Options	Index Options
Cash-Secured Put	✓	✓	✓	✓	✓	✓
Covered Call	✓		✓		✓		✓
Covered Put			✓		✓		✓
Long Call/Put			✓	✓	✓	✓	✓	✓
Collar			✓		✓		✓
Long Straddle/Strangle			✓	✓	✓	✓	✓	✓
Butterfly/Condor					✓	✓	✓	✓
Iron Butterfly/Condor					✓	✓	✓	✓
Vertical Spread					✓	✓	✓	✓
Long Calendar Spread					✓	✓	✓	✓
Long Diagonal Spread					✓	✓	✓	✓
Short Calendar Spread							✓	✓
Short Diagonal Spread							✓	✓
Short Naked Call/Put							✓	✓
Short Straddle/Strangle							✓	✓

4.Index Options Trading Fees

Index options trading incurs trading fees, a platform fee, and regulatory fees. The fee structure is largely similar to stock options, except that index options trading is subject to an additional exchange proprietary fee and contract fees that stock options do not have. Fees are subject to change.

4.1 Commission and Platform Fee

For more information, refer to the help articles.

4.2 Index Options Exchange Proprietary Fee

Many index options are listed exclusively on Cboe and are its proprietary products. Cboe charges the exchange proprietary fee when positions are both opened and closed.

Moomoo temporarily waives this fee for customers until February 29, 2024.

The fees listed in the chart may be subject to change.

4.3 Regulatory Fees

Same as stock options, click here for the details.

This content is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors' financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.

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