#FINANCIAL_LITERACY

Thank you for being a part of the Webull Community. You can now trade the first $1 multiplier, cash-settled option on the Mini S&P 500 Index (XSP) on Webull.

Nanos, an index option offered by Cboe, empowers retail traders to start small, learn, and grow confidence in options trading. Below are some questions you might ask.

What are the features of Nanos?

1. Small contract value and multiplier

The multiplier of Nanos options is $1. The notional value of one Nanos contract is 1/100 of an XSP contract, which is 1/10 the size of an option contract on the S&P 500 Index (SPX). See the table below for a comparison.

2. Cash settlement

Like all other index options, Nanos settles in cash. This is different from most equity options, which require delivery of equities at settlement.

3. European style

Nanos options exercise European style, which means they can be exercised only on the expiration date. However, they can be traded from 9:30 a.m. to 4:15 p.m. ET on the trading days before expiration. On the last trading day, trading hours for expiring Nanos options are 15 minutes shorter, from 9:30 a.m. to 4:00 p.m. ET.

4. Limited strike price

Compared with SPX and XSP, Nanos has limited strike prices. Initially, 5 strike prices for each expiration are listed. The minimum strike price interval is $0.50.

5. Expiring in no more than one week

Initially, Cboe lists up to 2 Monday weekly expirations, 2 Wednesday weekly expirations, and 2 Friday weekly expirations. In this way, Nanos options have an expiration date generally no more than one week out.

What are the risks of Nanos?

Nanos offer an opportunity for traders to trade the S&P 500 Index at a lower price. However, it does not make the risks of trading options any less. For options buyers, the maximum losses are premium per contract*the number of contracts purchased (plus applicable fees and commissions). For option sellers, the maximum losses are unlimited. Theoretically, the index can go up infinitely.

How to trade Nanos on Webull?

Step 1: Search Nanos in Webull and go to the index option details page

Step 2: Tap Options

Step 3: View Options Chain

Step 4: Select an Option Strategy and Side

Step 5: Click a contract to trade

Step 6: Submit Order

Step 7: Confirm Order

Webull now offers Nanos, index, complex, and equity options. The more choices you have, the more investment options you have access to.

What's an index option?

An index option is a contract itself. It's different from equity options mainly because it's based on a stock market index, such as the S&P 500 index or Nasdaq 100 index. Although it has a strike price, holders don't have to buy or sell any underlying stocks if they choose to exercise. It is settled in cash and usually exercised European style, which means holders can only settle on the date of maturity.

_{Disclaimer: Options trading entails significant risk and is not appropriate for all investors. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by the expiration date. Losses can potentially exceed the initial required deposit. Before trading options please read the Options Disclosure Document "Characteristics and Risks of Standardized Options" which can be obtained at Webull.com. Regulatory and Exchange Fees may apply.}

Sincerely,

The Webull Team