What is the "390 Rule"?

Per the Securities And Exchange Commission (“SEC”) approval of Chicago Board Options Exchange (“CBOE”) rule regarding professional trading, clients that place more than 390 option orders per day on average in a given calendar month is designated as “professional customers” for the duration of the next quarter.

For example: February is in Q1, so a client who exceeds the 390 average threshold for the month of February will be a professional customer during Q2, which begins on April 1st and ends on June 30th.

An option order is counted as one order if it is submitted as one of the following order types:

-Single leg order

-Complex order comprised of 8 legs or fewer

-Cancel

This “390 Rule” is designed to identify professional customers who compete with market makers who otherwise should not receive priority over retail clients’ orders.

Webull does not currently support professional customers as special order handling procedures are required.

If your account reaches 75% of the monthly threshold, you will receive a reminder notification.

If your account reaches 85% of the monthly threshold (6,630 orders), you can only liquidate your options positions for the remainder of the calendar month.

If your account reaches 100% of the monthly threshold, you will only be allowed to liquidate your options positions for the remainder of the calendar month and the next calendar quarter. This restriction will be lifted in the following calendar quarter.

For more information regarding the 390 Professional Orders Rule, please see the SEC release: https://www.sec.gov/rules/sro/c2/2016/34-78187.pdf