Placing an Options TradeTouch the magnifying glass on your homepage, find the value you want to trade options by, tap on the name of the security you are looking for, tap Trade in the lower right corner of the stock or ETF details page, tap Trading Options. You may recognize Robinhood as a convenient way to buy shares. But if you want to move up the commercial vehicle ladder, Robinhood also offers an easy and intuitive way to buy option contracts. Owners of call options generally expect the value of the stock to increase, while call option sellers generally expect the value of the stock to decrease or stay the same.
Robinhood recommends reading the Characteristics and Risks of Standardized Options eBook before you place your first trades. Options are a way to actively interact with the stocks you are interested in without actually trading the stocks themselves. Of course, you'll first need to gain enough experience to be approved to trade options on this fantastic platform. However, Robinhood is one of the best apps for options trading, as it requires no commissions and you can keep track of the rest of your portfolio without anything being split.
In addition to exchange-traded funds, cryptocurrencies, and other cool items, you can also qualify for various levels of options trading. Once your options are “in the money” (that is, the strike price is favorable for your position), you may be able to sell your options at a premium higher than what you paid for them. Once you have submitted the necessary information, Robinhood evaluates it and decides whether or not to approve you for options trading. How you proceed with your order from now on depends on the type of options you want to trade with.
Call option contracts not only give you leverage if you have a bullish view of a particular stock, but you can also take advantage of the opposite side of the trade by benefiting from bearish price action. Robinhood is a free trading platform that allows you to trade stocks, exchange-traded funds, options and cryptocurrencies for free. Owners of put options generally expect the value of the stock to decrease, while put option sellers generally expect the value of the stock to increase or stay the same. With commission-free trading and cryptocurrency, ETF and stock options available, you can create a large investment portfolio directly from your iOS or Android device.
If you want to take your financial portfolio to the next level, you may be interested in knowing how to trade options on Robinhood.