A long strangle on WeBull means buying an out-of-the-money call option and an out-of-the-money put option on the same stock, with the same expiration date but different strike prices

You're betting the stock will move sharply in either direction — up or down — but you're uncertain which way. The call gives you the right to buy at a higher price; the put gives you the right to sell at a lower price. Both options are cheaper than at-the-money options because they're further from the current stock price, so your total cost to enter the trade is lower than a straddle. You profit if the stock moves far enough in either direction to cover what you paid for both contracts.

WeBull's mobile app and web platform both let you place this trade, but the steps differ slightly between them. The process requires you to have options trading turned on in your account and enough buying power to cover the contracts you're purchasing.

Key Takeaways

  • A long strangle requires buying one out-of-the-money call and one out-of-the-money put with the same expiration date but different strike prices.
  • You must have options trading enabled on your WeBull account and sufficient buying power to cover the premium of both contracts.
  • On the web platform, you can build a multi-leg options order by selecting the call, then the put, then reviewing the combined order before sending it.
  • On the mobile app, you select the stock, navigate to the options chain, and add each leg separately to your order ticket.
  • The break-even points are the call strike price plus total premium paid (upside) and the put strike price minus total premium paid (downside).

Setting up options trading on your WeBull account

Before you can place any options trade, including a long strangle, WeBull requires you to have options trading enabled. Log into your account on the web platform, go to Account Settings, then select Permissions. Look for the Options Trading section and confirm your level is set to Level 2 or higher. Level 2 allows you to buy calls and puts, which is what you need for a long strangle.

If options trading is not yet enabled, WeBull will ask you to complete a brief questionnaire about your trading experience and investment goals. Your answers determine which level you're approved for. The approval is usually when ready, though in some cases it may take a business day. Once approved, you'll see options chains available for stocks you search.

Placing a long strangle on the WeBull web platform

Start by searching for the stock you want to trade. On the stock detail page, click the Options tab. You'll see a table showing all available expiration dates and strike prices for both calls and puts. Select the expiration date you want — this is the same for both legs of your strangle.

Find the call option you want to buy. This should be out-of-the-money, meaning the strike price is above the current stock price. Click on that call's row. A panel will open on the right side showing the bid-ask spread and other details. Click the Buy button. This adds the call to your order ticket but does not send it yet.

Now find the put option you want to buy. This should also be out-of-the-money, meaning the strike price is below the current stock price. Click on that put's row and click Buy. WeBull will now show both legs in your order ticket on the right side of the screen. Review the total premium you're paying for both contracts combined, then click Send Order or Preview Order to see the full details before confirming.

Placing a long strangle on the WeBull mobile app

Open the WeBull app and search for the stock. Tap the Options button at the bottom of the stock detail screen. You'll see the options chain with all available calls and puts. Tap the expiration date you want to use for both legs.

Scroll to find the out-of-the-money call you want to buy. Tap on it, then tap Buy. A ticket will appear at the bottom of your screen showing the call contract. Tap the plus icon or "Add Leg" option to add the put to the same order. Now scroll to find your out-of-the-money put and tap on it, then tap Buy. Both legs should now appear in your order ticket.

Review the quantity (usually 1 contract for each leg), the strike prices, and the total premium. Tap Send or Preview to confirm the order details, then tap Confirm to send the trade to WeBull's system.

Choosing strike prices and expiration dates for your strangle

The wider apart your strike prices are, the less you pay in total premium but the further the stock must move for you to profit. A call strike 5% above the current price and a put strike 5% below costs less than strikes 2% away, but requires a bigger move. Most traders choose strikes that are roughly equidistant from the current stock price to keep the risk balanced on both sides.

Expiration date affects how much time the stock has to move. Shorter expirations (7 to 14 days) are cheaper but require a faster move. Longer expirations (30 to 60 days) cost more but give the stock more time to reach your profit zone. Your choice depends on how quickly you expect the move and how much premium you're willing to pay.

Understanding your profit and loss zones

Your maximum loss is the total premium you paid for both the call and the put. This happens if the stock stays between your two strike prices when the options expire. Your profit starts once the stock moves far enough to cover that premium.

The upside break-even point is your call strike price plus the total premium paid. The downside break-even point is your put strike price minus the total premium paid. If the stock closes above the upside break-even or below the downside break-even at expiration, you make money. The further it moves beyond those points, the more you profit.

Closing or adjusting your strangle before expiration

You don't have to hold a strangle until expiration. On the web platform, go to Account, then Positions, find your strangle, and click the X or Close button. On the mobile app, tap Account, then Positions, find the trade, and swipe left or tap the menu icon to close it. WeBull will show you the current bid-ask spread for closing both legs and the profit or loss you'll realize.

If the stock moves in one direction but not far enough to profit, you can close the losing leg and keep the winning one. For example, if the stock rises but not enough to hit your upside break-even, you could close the put early to reduce your loss. This is called adjusting the trade and requires placing a separate close order for just that leg.

Frequently Asked Questions

What's the difference between a long strangle and a long straddle on WeBull?

A long straddle uses at-the-money strike prices for both the call and put, so both are closer to the current stock price. A long strangle uses out-of-the-money strikes, so they're further apart. Strangles cost less to enter but require a bigger move to profit. Straddles cost more but profit on smaller moves.

Can I place a long strangle order as a single multi-leg order on WeBull?

Yes. On the web platform, you add the call and put to the same order ticket before sending, so they're treated as one order. On the mobile app, you tap "Add Leg" to combine them. If one leg fills but the other doesn't, WeBull may cancel the entire order depending on your settings, so check your order confirmation.

What happens if only one leg of my strangle fills?

If you set your order as an all-or-nothing order, WeBull will cancel the entire trade if both legs don't fill. If you don't use that setting, one leg may fill while the other sits waiting. You can cancel the unfilled leg manually, or wait for it to fill. Check your order status in the Positions section to see which legs are open.

Do I need a margin account to trade long strangles on WeBull?

No. A long strangle is a defined-risk trade because your maximum loss is limited to the premium you paid. A cash account works fine. You only need enough buying power to cover the total cost of both contracts at the time you place the order.

How do I know if my strangle is profitable before expiration?

Go to Account, then Positions, and find your strangle. WeBull shows the current market value of both legs combined, your total cost, and your unrealized gain or loss in dollars and percentage. This updates throughout the trading day as the stock price and option prices change.