Moomoo will assess your option level based on the personal and financial information you provide when applying for an options account and allow you to use the respectiveoption strategies:
Option Level | AvailableStrategies |
0 | None |
1 | Covered Call |
2 | Covered Call Covered Put Protective Call Protective Put Collar Long Call or Put Long Straddle Long Strangle |
3 | Covered Call Covered Put Protective Call Protective Put Collar Long Call or Put Long Straddle Long Strangle Vertical Spread Butterfly Condor Iron Butterfly Iron Condor |
4 | Covered Call Covered Put Protective Call Protective Put Collar Long Call or Put Long Straddle Long Strangle Vertical Spread Butterfly Condor Iron Butterfly Iron Condor Short Straddle Short Strangle Naked Call or Put |
Note: With naked short selling, short straddle or short strangle, there is no limit to how high a stock price could rise, so the potential loss is unlimited. And there are also some other risks, including dividend risk and margin risk. Hence, these types of strategy are not appropriate for all investors.
Note: Moomoo US may adjust your option level and the option strategies available for each level at any time according to regulatory requirements and risk management needs.
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.
Moomoo is a financial information and trading app offered by Moomoo Technologies Inc.
In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC).
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request.