How Do You Trade Options On Robinhood – Share on Facebook Tweet (Share on Twitter) Share on Linkedin Share on Google+ (Share on Pinterest)
Someone on YouTube said that most of the tutorials on how to use Robinhood are only for the mobile version.
- 1. How Do You Trade Options On Robinhood
- 2. Robinhood Options Trading, Contracts, Puts/calls Cost (2023)
- 3. How I Turned $2,250 Into $10,000 Trading Equity Options
- 4. Useful Tools For Options Trading: Options Chain, Options Price Calculator, Implied Volatility Analysis, And P&l Analysis
- 5. Best Options Trading Platforms For Apr 2023
How Do You Trade Options On Robinhood
Let’s take a look at how you can sell stocks and call and put options from the desktop version of your Robinhood account.
Robinhood Suffers Major Outages During Wild Market Swings
If you don’t have an account with Robinhood yet and want to get FREE shares, click here to use our link and get free shares when you open an account with them.
After logging in, you will see some basic information about your account. On the left you will see your trading force and on the right you will see your checklist.
Above, you’ll see what TSLA is trading for, the chart below, and more information about the company below.
If you are authorized to trade options and wish to trade options on this stock, click on the “Trade TSLA Options” button on the right. (pictured above)
Robinhood Review 2023: Pros And Cons
After clicking this button, you will be shown what is available for option trading. The first thing you will choose is whether you want to buy or sell, and whether you want a call or a put option.
Then you look at the strike price, which is the level at which you have the right to buy or sell TSLA at expiration. To the right of that column, it will show you the price of that option.
The break indicates the price at which the stock must be at expiration to break even on your option.
BUT you don’t have to wait until expiration, if the stock goes up sooner, your option may gain value. You can technically sell it early.
Robinhood Options Trading, Contracts, Puts/calls Cost (2023)
After selecting the desired option, it will show you the summary on the right side. After reviewing it, click the green “Continue” button.
As you can see, the options are the same as the call options. But in this case, you believe the stock will go down, so you chose the put option.
The break-even shows how far the stock would have to fall to break even on the money you spent on the option purchase.
After you select the price of the option you want, it will ask you how many contracts you want to buy on the right.
How I Turned $2,250 Into $10,000 Trading Equity Options
For example, if you want to create a Bull Call Spread, you first select the call option you want to buy on a particular stock. You would then sell the money out of the call.
I hope this has given you an overview of how to use the desktop version of Robinhood to trade options.
If you’re ready for the next level and want to learn more about options trading or even just start out in the stock market, you should check out my Power Trades University Masterclasses, Coaching and Community.
There are many other brokerage accounts out there and I have other tutorials on how to use them. Click the links below for free tutorials.
Useful Tools For Options Trading: Options Chain, Options Price Calculator, Implied Volatility Analysis, And P&l Analysis
« Previous Post How to Trade Stocks on Your Phone Using Webbull Next Post » EP 062: Growing Up Black in Detroit, America Robinhood was founded with a mission to democratize finance for everyone. That means creating new products, services and educational tools for our new and advanced customers and empowering them to choose how to manage their money and help them achieve their goals.
That’s why we’re excited to announce that options trading with cash accounts is now available to all eligible Robinhood customers. It’s one of the most popular features of our advanced customers and builds on the work we’ve done this year to improve their shopping experience (more on that below).
With a cash account, customers can only use deposited funds or standing funds to trade. As a result, FINRA* model day trading rules, which limit the number of day trades a customer can make in a margin account within five days, no longer apply. This means advanced clients with cash accounts can trade stocks, ETFs and now options without worrying about their daily trade count. You can read more about the differences between Robinhood account types here.
Options trading in cash accounts is a standard business proposition. Options trading involves significant risk and is not suitable for all customers, so all interested customers should apply for options access and review their accounts to determine their qualifications.
Best Options Trading Platforms For Apr 2023
Customers who wish to trade options in a cash account can click here or open the app and go to Account → Schedule → Investment → Day Trading Settings → Cash Account. Go to Account → Settings → Deposit → Account Type → Convert to Cash Account online.
Options trading in cash accounts is the latest example of the launch of important features and services for our most advanced customers. See below for an overview of progress over the last 6+ months:
We’ve launched the Options Trading Essentials Hub in 2021 – a dedicated site on Robinhood Learn that’s accessible to everyone, covering the ins and outs of options trading, risk management and more. teaches about We’ve also expanded our Help Center with extensive resources on options and margin trading.
FINRA’s model day trading rules require that any client who makes four or more day trades within five business days must have at least $25,000 in equity in their margin account and cannot trade more than their day trading buying power. Read more here:
Basic Options Strategies (level 2)
** Banks may change the APY program at any time at their discretion. See Insurance Network Clearing Program publications (
) for more information about FDIC insurance available to program banks for swept funds. Neither Robinhood Financial LLC nor its subsidiaries are banks.
Options trading involves significant risk and is not suitable for all buyers. Consumers should read and understand
Before engaging in any option trading strategies. Option transactions are often complex and can involve losing your entire investment in a very short period of time. Some sophisticated options strategies involve additional risk, including potential losses that exceed the initial investment amount.
Updates To Robinhood Options — Under The Hood
Robinhood Financial does not guarantee favorable investment results. Past performance of a security or financial product is no guarantee of future performance or results. Clients should carefully consider their investment objectives and risks before investing in options. Because of the importance of tax accounting for all options transactions, a customer considering options should consult a tax advisor about how taxes will affect the outcome of each options strategy. If necessary, supporting documentation for any claims will be provided upon request.
Options Watchlist: This feature provides estimated results based on when a deal is selected for inclusion in the watchlist and does not guarantee future results. No contracts were bought or sold. The checklist is for informational purposes only and should not be construed as a personalized recommendation or investment advice. Actual profit or loss may differ materially due to a number of factors not specified in these assumptions.
Stock loan is not suitable for all customers. Share loan proceeds may vary depending on feature eligibility and which shares are loaned. Equity loan income is not guaranteed and the equity must be matched with the borrower to get equity loan income. More information on risks and fund lending can be found here
), is a registered broker-dealer and provides brokerage clearing services. All are subsidiaries of Robinhood Markets, Inc. (“Robinhood”).
Robinhood Blocks Buying In Gamestop, Amc, And Other Stocks
Shareholder Q&A events are made available through Say Technologies, LLC (“Say”), which provides access to the events through its proprietary Q&A platform. For example, Robinhood Financial LLC (member
Securities trading is offered by Robinhood Financial to clients managed by it. Robinhood Financial is a member of the Financial Industry Regulatory Authority (FINRA).
Robinhood Financial LLC is a SIPC member that protects members’ securities clients up to $500,000 (including $250,000 for cash claims). An explanatory booklet is available on request or at www.sipc.org.
How To Trade Options On Robinhood
Cryptocurrency trading is offered through a Robinhood Crypto account. Robinhood Crypto is not a member of FINRA or SIPC. Cryptocurrencies are not stocks and your digital currency investments are not protected by the FDIC or SIPC.
Commission-free trading of stocks, ETFs and options means $0 commission for Robinhood Financial’s own brokerage or margin accounts, which trade US-listed securities via mobile devices or the Internet. Applicable SEC and FINRA fees may apply. See the fee schedule.
Currently listed on Robinhood Financial Today
How to do options on robinhood, trade options on robinhood, how to trade options on robinhood, how do you get trade options on robinhood, trade options in robinhood, can you trade options on robinhood, how to trade options robinhood, how to do trade options on robinhood, can i trade options on robinhood, how do i trade options on robinhood, how trade options on robinhood, how trade options robinhood