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Help Center Trading in US Market US Index Option Trade Index Options

Trade Index Options

1. FAQs

2. Index Options Order Types

3. Index Options Levels

4. Index Options Trading Fees

 

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.

1) How to trade index options?

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

2) What is the minimum trading unit for index options?

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

3) 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

Except for the above trading sessions, moomoo does not support other trading sessions for index options.

4) 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.

For more information, refer to the help article "Order Types".

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

For more information, refer to the help articles "Multi-Leg Options Orders" and "US stock options rolling"

 

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:

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.

 

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. For more information, visit moomoo.com/us/pricing

4.1 Commission and Platform Fee

For more information, refer to the help articles "Moomoo US Fee Schedule" and "Multi-Leg Options Fees".

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 are as of October 27, 2023 and are subject to change.

4.3 Regulatory Fees

Same as stock options. For more information, refer to the help article "Moomoo US Fee Schedule".

Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options (https://j.us.moomoo.com/00xBBz) 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. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. The content is for informational purposes and is not a recommendation of any specific securities. The data and information provided has been obtained from sources considered to be reliable, but Moomoo Financial and its affiliates do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. Securities are offered through Moomoo Financial Inc., Member FINRA/SIPC.