How to Buy and Sell Options on Moomoo (Futu)

Recently, I’ve been doing quite a bit of option trading of US stocks and the platform that I use to buy and sell options is Moomoo (by Futu).

PS: If you don’t have any account with Moomoo yet, you can sign up here and get free 2 Pfizer shares and 5 Haidilao shares upon deposit and completing the necessary tasks. Promotion valid till 31 August 2021. Here’s the detail on Moomoo’s latest welcome bundle.

The reason I choose to trade options with Moomoo is because I find their platform to be very intuitive and user-friendly. Well, maybe that’s because I’ve spent hundreds of hours on Moomoo.

Anyway, if you are a new user and you are scratching your head trying to figure out how to trade options on Moomoo, fret not.

In this article, I’ll try my best to show you the step-by-step guide on how to buy and sell options on both desktop platform and mobile app.

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I will not discuss about option strategies because you can read my in-depth article about option strategies here:

I also won’t explain the basic of options trading because I presume that you are already familiar with those stuffs. If you aren’t, let me know in the comment and I can do another post about the basic of options trading.

In this post, I’ll discuss about:


What option strategies can you do in Moomoo?

By default, you can buy and sell basic calls and basic puts (or cash-secured puts).

You can sell covered calls, but you need to activate covered call function by contacting their customer service. If you don’t request from CS and you go ahead with selling a call, your call will be treated as naked call. The easiest way to contact customer service is via the mobile app, go to Me – Customer Service. They replied quite fast when I contacted them during working hours.

As for other option strategies, such as vertical spreads, straddles, butterflies, etc, Moomoo said that they will be available soon in 2021.

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Moomoo’s options fees

The below image shows the fees you need to pay when buying and selling options on Moomoo, which is screen captured from Moomoo’s website in July 2021.

You will be charged 1x when you open a position. Then, if you close your position before expiry, you’ll be charged 1x again. That means, you’ll be charged 2x in total, 1 for opening and 1 for closing a position.

However, if you hold the option until expiry, you won’t be charged any additional fees during expiration. That means, in total you’ll be charged only 1x, which is when you open a position.

Moomoo Futu - option fee
Source: Moomoo’s website (captured in July 2021)
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If the table looks too confusing and you want to gauge the fees you’ll be paying when you trade options, below is a sample of option fee that I paid when I sell 1 contract of Nio put (PS: 1 contract means 100 shares). Generally, I pay around $2.5 to $3 everytime I open or close a position of 1 contract.

Sample option transaction fee
Sample of my transaction – I paid 2.78 transaction fee for selling of put option

How to buy and sell options on Moomoo’s desktop platform

1. Click on “Quotes”

2. Click “US”

3. Select the stock (Eg: AAPL)

How to trade option on Moomoo desktop (1)
Step 1, 2, 3 (click to enlarge)
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4. Click “Options”

5. Click “More filters”

How to trade option on Moomoo desktop
Step 4, 5 (click to enlarge)

6. Choose the option expiry date

7. Choose the option that you want to buy / sell

How to trade option on Moomoo desktop
Step 6, 7 (click to enlarge)
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If you don’t like the columns displayed on the option chain, you can customize your display by clicking right on the column title, and choose “List setting.” Then, choose the columns that you want to display.

How to trade option on Moomoo desktop
To filter the column, right click on the column title (click to enlarge)
How to trade option on Moomoo desktop
Choose the column that you want to display on your option chain
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8. Select the strike price of the call/put that you want to trade

9. Double check if this is the option that you want to trade.

AAPL: stock name
210806: option expiry date
P: put
130000: strike price $130.00

10. Click “Trade”

How to trade option on Moomoo desktop
Step 8, 9, 10 (click to enlarge)
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11. Fill up your order

How to trade option on Moomoo desktop
Step 11 (click to enlarge)
How to trade option on Moomoo desktop
How to fill up the Order Form on desktop (click to enlarge)
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12. Wait for your order to be filled

How to trade option on Moomoo desktop
Step 12 (click to enlarge)

13. Monitor your option performance here. Click “Me”

How to trade option on Moomoo desktop
Step 13 (click to enlarge)

You can also monitor your option performance here. Click “Trade” – “US Trading”

How to trade option on Moomoo desktop
Also Step 13 (click to enlarge)
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How to buy and sell options on Moomoo’s mobile app

1. Click on “Quotes”

2. Click “US”

3. Select the stock (Eg: AAPL)

How to trade option on Moomoo mobile
Step 1, 2, 3
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4. Swipe the tab to the left until you see “Options”

How to trade option on Moomoo mobile
Step 4

5. Click “Options”

6. Choose the option expiry date

7. Choose the option that you want to buy / sell

How to trade option on Moomoo mobile
Step 5, 6, 7
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8. Double check if this is the option that you want to trade.

AAPL: stock name
210806: option expiry date
C: call
150000: strike price $150.00

9. Click “Trade”

How to trade option on Moomoo mobile
Step 8, 9
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10. Fill up your order

How to trade option on Moomoo mobile
Step 10 – How to fill up the Order Form on mobile (click to enlarge)

11. Check & click “Confirm”

How to trade option on Moomoo mobile
Step 11

12. Click “OK”

How to trade option on Moomoo mobile
Step 12
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13. Wait for your order to be filled

How to trade option on Moomoo mobile
Step 13

14. Monitor your option performance here. Click “Trade” – “US”

How to trade option on Moomoo mobile
Step 14
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15. Alternatively, go to “Me” – “Brokerage account” to monitor your position performance and your order

How to trade option on Moomoo mobile
Step 15
How to trade option on Moomoo mobile
Step 15
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How to Close a Position

If you have bought an option in the past, and now you want to sell this option (in other words, you want to close your position) before expiration, the process is exactly the same as buying an option except that you now click “Sell” instead of “Buy”.

Similary, if you shorted an option in the past and now you want to buy back an option to close your position before expiration, the process is exactly the same as selling an option except that you now click “Buy” instead of “Sell”.

There is no special steps on how to close a position. It’s just like a stock. If you have a stock and you want to sell it, you simply click “Sell” and your brokerage will dispose it from your account.

How to Exercise an Option

If you’re an option seller, you don’t have the right to exercise the option that you sold before expiration. You are at the mercy of the option buyer.

If you’re an option buyer, and the option you’re holding is “American” type, you have the right to exercise your option before expiration. To do so, you need to contact Moomoo manually.

How to know whether the option you’re holding is American or European? You can see it in the Option Quote description, as highlighted in the below image. You can see it on both desktop & mobile, but the example I’m showing below is taken from Desktop. As for European option, to be honest, I’ve never seen it on Moomoo.

How to trade option on Moomoo - option type
Where to see option type on Desktop
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What Happens if Options Expired OTM (Out of the Money)

On the next trading day, before market opens, Moomoo will send you:
1. email to announce that option has already expired, and
2. notification in the app to announce the expiration

If your option expires worthless on a Friday, nothing will happen on Saturday & Sunday, the options will still appear in your portfolio. Come Monday, after you receive email and app notification, then the expired option will disappear from your portfolio.

What Happens if Options Expired ITM (In the Money)

On the next trading day, before market opens, Moomoo will:
1. email you saying that option has been exercised
2. notify you in the app regarding the exercise/assignment
3. deduct/deposit money to your account as a result of the exercise/assignment
4. reflect the change of stocks in your account as a result of the exercise/assignment

If your option expires ITM on a Friday, nothing will happen on Saturday & Sunday, the options will still appear in your portfolio. Come Monday, after you receive email and app notification about the exercise/assignment and you’ll see changes in your portfolio as a result of the exercise/assignment. I wrote an article about my own experience getting assigned stocks when my put option expired in the money.

Conclusion

I hope this can help your option trading journey on Moomoo. If you haven’t got a Moomoo account yet, you can sign up with my referral link here and get a free share upon deposit.

If you have any questions, let me know in the comment!

Featured image: Canva Pro/Getty Images

This Post Has 18 Comments

  1. George Papazov

    Thank you very much for this. Many charts are displayed in the post. But an experienced trader can explain this.

  2. christian

    Hi I was wondering what your requirments were for selling naked call options? I haven’t been able to find a definite finra minimum and each broerage seems to have there own requirements. for example I was hoping to sell a 830 call option on tesla that expires on 10/8/21.

    1. prudentdreamer

      I am not so sure about the financial requirement for selling naked call options. I suggest that you contact the broker directly for a more definitive answer.

  3. QL

    Hello! Chanced upon your blog and found it very helpful! Can you do a post on basic on options trading?

  4. John

    Hi PrudentDreamer,
    Thanks so much for the detailed explanations. Greatly appreciate it!
    I have a few questions on how to use the Moomoo platform and hope you can kindly advise/help please.

    Situation #1 based on “Sell put”
    If the stock price drops below the strike price of my sell put, and I need to buy the 100 units of stock. What are the steps I need to take in Moomoo desktop or mobile app?

    Situation #2 based on “Buy call”
    a) If the stock price rises high above the strike price of my buy call, and I want to sell away my call contract to earn premium. What are the steps I need to take in Moomoo desktop or mobile app?
    b) If the stock price rises high above the strike price of my buy call, but this time I decide to buy the 100 units of stock and keep for long term. What are the steps I need to take in Moomoo desktop or mobile app?

    Sincere thanks and hope to hear from you again soon!

    1. prudentdreamer

      Hi John,
      Glad my article helps!
      Situation #1: There are 2 possibilities. First, if your option buyer decided to exercise his/her put option early before expiration, Moomoo will execute the exercise and deduct your money and deposit the stock to your account. Second, if your option buyer decided not to exercise early, both you and the buyer simply just wait until the expiry date, and Moomoo will settle the transaction. You, however, do not have the right to decide whether you want to get assigned early or at expiration. Most of the time, option buyers rarely exercise their option before expiration.

      Situation #2:
      a) It’s exactly the same step as buying the call, except this time you’re selling the call. Just click on your call option, then click trade, then sell the qty.
      b) As a call buyer, if you want to exercise your call option before expiration, you need to contact Moomoo to tell them your intention. See the details here. Alternatively, you can also wait until option expiry, if the price is still above your strike price, you’re in the money, so Moomoo will take care of the transaction automatically.

      Hope it helps. Let me know if you have more question and I’ll be glad to help.

      1. John

        Hi PrudentDreamer,
        Thanks very much for the clear and detailed explanations. Greatly appreciate it!
        I understand now! All clear and thanks for your advice/help.
        Many thanks!

  5. newbie

    Hi, after I sell a put option, how do I close this position in moomoo before contract expiry.

    1. prudentdreamer

      Hi, it’s the same process as selling. Instead of selling, just click buy. Moomoo can automatically understand that you’re buying to close your position, you don’t have to tell them that you’re buying to close, not opening a new buy position. Hope I make sense.

  6. Cheewwy

    Hi, can I check if we can sell a call option position or put option position in moomoo before the contract expiry?

    1. prudentdreamer

      Yes, all call/put buy and sell order must be submitted before option expiry.

      1. Cheewwy

        Do you have the steps to sell a call/put position on moomoo?

        1. prudentdreamer

          This is it. This post that you’re commenting on is the step by step guide.

  7. Hi Prudent Dreamer, thanks for the very detailed post. I have a question on cash secured puts. For example, if I sell a BABA cash secured put @ $150, would I only need the maximum cash amount of $15,000 in my account? because in the extreme scenario that BABA drops to $1, the value of the put option contract would likely exceed $15,000 because of the time value of the option. In that scenario, would I need more collateral in my account beyond the initial $15,000? thank you

    1. prudentdreamer

      Hi AlpacaInvestments, yes you’re right, for selling put option at the strike price of $150, you only need to have $15,000 cash in your account. In the event that BABA price drops to $1, the price of put option will shoot up (let’s say it goes up to $180, hypothetically), but you don’t need to top up your cash. You can simply wait for the option to expire, then your brokerage will deduct $15,000 from your account to purchase 100 share at $150 each.

  8. Jennifer

    It is very detailed. thank you for your hard work.

    Could you share more how to use the platform features?

    1. prudentdreamer

      Thank you! Any particular feature or just the general how-to-use-moomoo?

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