Best Options Trading Apps For 2025

Go to broker’s website Plus500 Overview

If you're too busy to read the entire article and want a quick answer, the best options trading app is Plus500. Why? Here are its key advantages:

• Is legit in your country (Identified as United States )
• Has a good user satisfaction score 6.83 out of 10
• High leverage at low costs
• Variety of available assets

Go to broker’s website Plus500 Overview

Below, we'll explain in more detail why we believe this and how brokers were evaluated.

In this article, we will look at the best apps that provide options trading and analyze options strategies that you can use to trade and lay down some tips to select the best options trading app in the market. Furthermore, we will give you some tips on how you can manage your risk effectively.

Best options trading apps

We have carefully selected a list of top brokers for options trading to help you trade confidently and efficiently.

How to choose the best options trading apps

When deciding on an options trading app, consider the following factors to ensure you make the right choice:

Cost and commissions

Try to opt for those apps that offer competitive or commission-free trading. An app with a high fee can eat into your profits, so choosing a platform that aligns with your budget and trading goals is very important.

User-friendly interface

Before trading, check if the app has an intuitive interface. A user-friendly app makes executing trades, research, and monitoring your portfolio easier.

Educational resources

An app offering options trading should offer educational content for beginner and advanced traders. This could include articles, videos, and webinars on complex options strategies.

Charting and analysis tools

Good charting features and options analysis tools like option chains and volatility calculators are important in making informed decisions.

Order execution

Always choose an app that has a reliable and fast order execution. A delay or an error in executing the trade can lead to missed opportunities or losses.

Mobile compatibility

In today’s remote and fast-paced world, every app should have its own mobile version so that you can trade on the go.

Variety of options

While selecting an app, make sure that the app provides a wide range of options contracts, and assets to trade. Diverse options allow you to tailor your strategy to different market conditions.

Demo аccounts

Some apps provide paper trading apps that allow you to practice trading with virtual funds in demo accounts. This is an excellent way to familiarize yourself with the platform and test different strategies before using real money.

Best options strategies

Covered call

A covered call is a way to earn additional yield on your shareholdings by risking the outcome of being forced to sell your shares. If you own shares in a company and think the price wouldn’t rise much, you can sell a call option on those shares, which would give others the right to buy your shares later at a set price. If the price stays below the agreed upon option exercise price, you get to keep the premium earned for that option. If it goes higher, the call option will get exercised and you will have to sell your shares.

Covered call strategy Illustration

Consider this illustration, where an investor is long 100 $SPYETF shares at a price of $436.39 per share. They may write an out-of-the-money call option contract (of 100 shares) at exercise price of $441 and receive roughly $6.12 in premium income per share (total $612). Their net position will be safe as long as the price of $SPY does not fall below $430.27, which is the break even point. If the price closes below this point at expiry, the investor will book a loss equivalent to (loss on shares – total premium earned, i.e. $612). Moreover, they may earn a maximum profit of $1,074 ($612 + $462 price appreciation from current price of $436.39) if the price of $SPY closes at or above $441 at expiry.

Long call

A long call is like reserving a deal. You believe a company's stock will rise, so you pay a small fee to buy the right to purchase the shares at a set price later. If the shares rise, you buy at the lower price you reserved. If not, you only lose the fee.

Long call strategy Illustration

Consider this illustration, where an investor purchases a $436 strike call option on $SPY shares at a premium of $9.02 per share (total premium of $902). This gives them the right to buy 100 $SPY shares at a price of $436 per share at expiry. Their holding will turn profitable when $SPY crosses above $445.02, which is the breakeven point (Strike price of $436 + premium paid of $9.02). If the price closes below $436 at expiry, the option will expire worthless and the investor may face the maximum loss of $902 (which was the total premium paid). The maximum profit for the investor here is unlimited, given that share price can theoretically rise indefinitely.

Protective put

A protective put involves owning stock and purchasing a put option as insurance against price declines. If the stock price drops below the strike price, the investor can sell the shares at the strike price, limiting losses to the premium paid.

For example an investor holds 100 shares of a stock priced at $50 and buys a put option with a $45 strike price for $2 per share. If the stock drops to $40, the investor can sell at $45, limiting the loss to $7 per share ($5 from the stock price drop and $2 for the premium).

Long straddle

A long straddle strategy involves buying both a call and a put option with the same strike price and expiration. This is useful when expecting significant price movement but unsure of the direction. If the stock moves enough in either direction, profits can offset the combined premiums.

For example An investor buys a call and a put option for $5 each with a $100 strike price. If the stock rises to $110 or falls to $90, the option with value will yield a net profit of $5 per share after covering the premiums. If the stock stays at $100, both options expire worthless, and the loss is the combined premiums.

Iron condor

An iron condor involves selling a call and a put option at closer strike prices while buying a call and a put option at further strike prices. This strategy works well when expecting low volatility and a stable stock price within a specific range. The profit is limited to the premiums received, while losses are capped by the purchased options.

For example an investor sells a call with a $105 strike price and a put with a $95 strike price while buying a call at $110 and a put at $90. If the stock stays between $95 and $105, the investor keeps the premiums. If it moves beyond $90 or $110, the bought options limit losses.

How much money do you need for options trading?

The capital required for options trading varies significantly and depends on several factors, including your trading goals, risk tolerance, chosen trading strategy, and the type of underlying assets you plan to trade. Here's a closer look at these factors:

Trading goals

If you want to generate consistent income through options trading, you will need to start with a much larger capital. On the contrary, if you are aiming for occasional trades or speculative positions, you may require much less capital.

Risk tolerance

Options trading is inherently risky, and having a higher risk tolerance will allow you to deploy more capital to options trading. On the other hand, if you are risk averse, you can approach trading with a more conservative approach and take smaller positions.

Trading strategy

Different strategies have varying capital requirements. Strategies like covered calls or cash-secured puts typically require less capital as they involve hedging and conservative positions. More complex strategies like iron condors or straddles may require larger capital due to potential higher risks.

Underlying assets

Your capital needs and allocation depend on the type of assets that you’re willing to trade. You can trade options on individual stocks, ETFs, indices, or commodities, and each has its own different requirements.

Is options trading risky?

Yes, options trading carries inherent risks, but there are strategies you can employ to help reduce and manage these risks. Here's how to navigate options trading while minimizing potential downsides:

Educate yourself

To effectively manage your risk, understand the fundamentals first. Learn about the basics of options, their different strategies, and how they work. You can invest time and learn about market conditions, trends, and other factors that influence options prices.

Start small

Begin with a modest capital allocation. This minimizes potential losses while you're learning the ropes. As you gain experience and confidence, you can gradually increase your trading size.

Risk management

Use stop-loss orders to limit potential losses on individual trades. Determine the maximum percentage of your trading capital you're willing to risk on any given trade.

Choose conservative strategies

Strategies like covered calls and cash-secured puts are considered more conservative as they provide downside protection. They are suitable for traders seeking steady income while minimizing risk exposure.

Understand probabilities

Options trading involves assessing probabilities. Learn how to analyze option Greeks, like delta and theta, to gauge potential outcomes and risks.

Risk-reward ratio

Evaluate the potential risk and reward of each trade. Consider trades with a favorable risk-reward ratio, where potential gains outweigh potential losses.

Pick an app that tracks real-time changes in volatility and large trade volumes

Anastasiia Chabaniuk Author, Financial Expert at Traders Union

When starting with options trading, pick an app that tracks real-time changes in volatility and large trade volumes, helping you identify when the market may offer promising opportunities. For beginners, this feature can highlight where experienced traders are focusing their trades, allowing you to gain insights without needing deep technical expertise.

Another essential step is to use apps that let you set specific price and risk alerts tailored to your goals. For instance, you can receive updates when an option reaches your desired price or when volatility spikes. This way, you stay informed without constantly checking the app. Additionally, practice in demo mode to refine your strategies in a safe, no-risk environment.

Conclusion

Choosing the best options trading app is a crucial step toward successful trading. The right app should offer a balance of low fees, a user-friendly interface, comprehensive educational resources, and robust analysis tools. By considering your trading goals, strategy, and risk tolerance, you can find a platform that aligns with your needs.

Whether you’re a beginner testing strategies on demo accounts or an experienced trader seeking advanced charting tools, there’s an app designed for you. Evaluate your options carefully and prioritize platforms with reliable execution, diverse contracts, and strong mobile compatibility to stay ahead in the dynamic world of options trading.

FAQs

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Team that worked on the article

Parshwa Turakhiya

Author at Traders Union

Parshwa is a content expert and finance professional possessing deep knowledge of stock and options trading, technical and fundamental analysis, and equity research. As a Chartered Accountant Finalist, Parshwa also has expertise in Forex, crypto trading, and personal taxation. His experience is showcased by a prolific body of over 100 articles on Forex, crypto, equity, and personal finance, alongside personalized advisory roles in tax consultation.

Learn about our editorial policies

Chinmay Soni

Developmental English Editor

Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito

Cryptocurrency and stock expert

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

Glossary for novice traders

Leverage

Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.

Scalping

Scalping in trading is a strategy where traders aim to make quick, small profits by executing numerous short-term trades within seconds or minutes, capitalizing on minor price fluctuations.

Forex Risk Management

Risk management in Forex involves strategies and techniques used by traders to minimize potential losses while trading currencies, such as setting stop-loss orders and position sizing, to protect their capital from adverse market movements.

Paper trading

Paper trading, also known as virtual trading or simulated trading, is a practice where individuals or traders simulate real-life trading scenarios without using real money. Instead of placing actual trades with real capital, participants use a simulated trading platform or keep track of their trades on paper or electronically to record their buying and selling decisions.

Risk Management

Risk management is a risk management model that involves controlling potential losses while maximizing profits. The main risk management tools are stop loss, take profit, calculation of position volume taking into account leverage and pip value.