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Robinhood options trading is a feature that eligible customers can enable in six steps, starting with an investor profile review and ending with Robinhood assigning an approval level.
- Open the Robinhood app and select Account.
- Select Investing.
- Find Options trading and select Get options trading.
- Confirm that your investor profile is current.
- Review and accept Robinhood's Options Agreement.
- Wait for Robinhood to notify you of your approved options trading level.
Robinhood's options trading instructions
Robinhood Options Activation at a Glance
| Task | Robinhood menu path |
|---|---|
| Enable options in an individual investing account | Account → Investing → Options trading → Get options trading |
| Update your investor profile | Account → Menu → Settings → Personal information → Investor profile |
| Enable options in a Robinhood IRA | Account → Menu or Settings → Investing → Select your IRA → Options Trading → Enable Options Trading |
| Start an options trade after approval | Search for a stock, ETF, or index → Trade → Trade options |
How Robinhood Decides Your Options Trading Level
Robinhood reviews your investor profile, trading experience, investment objectives and financial situation before assigning an options trading level. Your level determines which strategies you can use.
| Approval level | Examples of available strategies |
|---|---|
| Level 2 | Long calls, long puts, covered calls and cash-secured puts |
| Level 3 | Level 2 strategies, plus certain limited-risk spreads, iron condors and iron butterflies |
A cash account does not support Level 3 options trading. Eligible and approved Robinhood margin accounts may have access to Level 3 strategies.
Robinhood options approval levels
How to Enable Options in a Robinhood IRA
Options must be enabled separately in each Robinhood account. Enabling options in an individual investing account does not enable them in a Traditional IRA or Roth IRA.
- Select Account.
- Select the Menu icon or Settings.
- Select Investing.
- Choose the account you want to use, such as your individual account, Traditional IRA or Roth IRA.
- Scroll to Options Trading.
- Select Enable Options Trading.
Robinhood options in retirement accounts
Robinhood Retirement currently does not offer Level 3 strategies such as straddles, strangles, vertical spreads and calendar spreads.
What to Do if the Options Trading Option Is Missing
If Options Trading is missing, start by confirming that your investor profile is complete and current:
Account → Menu → Settings → Personal information → Investor profile
Robinhood uses your annual income, investing experience, financial situation, goals and employment information when reviewing eligibility. Enter accurate information. Do not change your answers to try to obtain a higher approval level.
Also check that:
- You are viewing the correct Robinhood account.
- You are not using a custodial account, which does not support options trading.
- Your account has no restriction or pending verification issue.
- You have completed the Options Agreement.
- You have applied separately for an IRA if you want to trade options in a retirement account.
Robinhood options trading FAQ
For a joint Robinhood account, both co-owners must apply and receive approval. The account receives the options level for which both owners qualify.
Robinhood options account requirements
Why You May Be Unable to Place an Options Trade After Approval
Approval does not make every options trade available. Robinhood may restrict options trading when you are using unsettled Instant Deposit funds. Pending bank deposits can take up to five business days to become available for options trading.
Robinhood also does not support options trading on every stock. The stock, ETF or index must be supported on Robinhood and have an available options market.
After approval, search for the stock, ETF or index you want to trade. Open its detail page, then select Trade → Trade options.
Robinhood options trading restrictions
Important Risk Before Trading Options
Options can lose value quickly. Depending on the strategy, you can lose your entire initial investment or more. Robinhood does not allow uncovered options, but approved users can still trade strategies with substantial risk.
Before submitting an order, review the contract's:
- Expiration date
- Strike price
- Premium
- Break-even point
- Maximum potential loss
Robinhood options trading information