- How To Start Option Trading On Robinhood
- How To Trade 0dte Options (with Real Examples)
- Robinhood Trading Journal By Tradervue
How To Start Option Trading On Robinhood – Last December, we launched a more intuitive, cost-effective way for you to trade options. This was an important step in enabling you to easily manage all your investments in one place. Since then, we have transacted over $2 billion in options premium volume, becoming one of the largest options-trading platforms.
Today, we are introducing multi-leg options strategies on Robinhood, improving the options trading experience and giving you more control over your investments. You can now trade multi-leg options strategies in a single order, and monitor the contracts together, commission-free.
How To Start Option Trading On Robinhood
Multi-leg options strategies have been one of the most frequently requested features by options investors on Robinhood. With multi-leg, you can trade Level 3 strategies such as iron condors, straddles, struggles, call and put debit spreads, and call and put credit spreads more efficiently, invest at a lower risk and with less capital requirements.
Introducing Options Trading
You can also monitor and close your options positions on Robinhood Web. In the near future, we will bring all options features available on the Robinhood app to the web.
To get started, download the latest version of Robinhood from the App Store or Google Play and sign up for trading options. More information about trading options can be found in the Help Center, and in the Options Risk Disclosure document.
Someone on YouTube commented that a lot of the tutorials on how to use Robinhood are only about the mobile version.
Let’s break down how to trade stocks and call and put options from the desktop version of your Robinhood account.
Introducing Multi Leg Options Strategies
If you don’t have an account with Robinhood yet and want to get free stock, click here to use our link and get free stock when you open an account with them.
Once you log in, you will see some basic information about your account. On the left you will see your trading power and on your right, you will see your watchlist.
You’ll notice at the top how much TSLA is trading for, the chart below, and more information about the company below.
If you are approved to trade options and are looking to trade options on the stock, click the button on the right “Trade TSLA Options”. (picture above)
How To Trade 0dte Options (with Real Examples)
Once you hit the button, you will be shown what is available for the option trade. The first thing you will select is whether you are buying or selling, and if you want a call option or a put option.
Then you would look at the strike price, which is how much you would have the right to buy or sell TSLA at the time of your expiration date. On the far right of the same column, it will show you the price of the option.
Break even shows you the price the stock will need to be on the expiration date in order to break even on your option.
But you don’t necessarily need to wait until the expiration date, your option may gain in value if the stock goes up quickly. You could technically sell it early.
Robinhood App — How It Works And Everything You Need To Know
Once you select the option you want, it will show you the summary on the right side. Once you review it, press the green “Continue” button.
As you can see, the features are almost identical as it was for call options. But in this case, you believe that the stock will fall, so you chose a put option.
The break even would show you how much the stock needs to drop in order to break even on how much you have spent buying the option.
Once you select the price of the put option you are selecting, it will ask you how many contracts you would like to buy on the right.
Best Options Trading Platforms, Brokers, Apps & Software In 2023
For example, if you want to create a bull call spread, you would first select the call option you want to buy on a particular stock. And then you would sell the out of the money call.
I hope this was able to give you an overview of how to use the desktop version of Robinhood to trade options.
If you are ready for the next level and to learn more about option trading or even start in the stock market, you must check out my premium courses, coaching and community at Power Trades University.
There are a ton of other brokerage accounts out there, and I have other tutorials on how to use them. Click on the links below for free tutorials.
Robinhood Cuts Trading Fees, Grows Profits With In House Clearing
« Previous post How to trade stocks on your phone using the Webull app Next post » EP 062: Growing up black in Detroit in America Robinhood is a free trading app that allows investors to trade stocks, options, exchange-traded funds, ADRs, and cryptocurrency at $0 commissions or fees. It was founded in 2013 by Vladimir Tenev and Baiju Bhatt. It launched a mobile app in 2015. Its mobile app is easy to use. In 2017, Robinhood also launched its website.
As of 2020, its valuation is $11.2 billion and has 13 million user accounts. Most of its customers are young and inexperienced traders. In December 2017, it disrupted the entire online brokerage industry by providing free options trading on the mobile app. Since then, many online brokers such as Fidelity, Charles Schwab, TD Ameritrade, etc., offer $0 fees and commission.
Step – 1: Type the stock name you want to trade in the search box, for example, Tesla.
Step – 2: You will see the interface like this. The current price of the stock you searched for is shown in the top left, and the price chart is displayed. You can analyze the price trend ranging from 1 day to 5 years. If you scroll down, you will find information about the company.
Robinhood App Review
Step – 4: Then you will see the various strike prices of the call options. You can click on buy/sell and call/put and select the expiration date from the drop-down list. You can see the current price of the underlying stock is in the middle of the option range. Call options below the current price are said to be in-the-money (ITM) and above the current price are said to be out-of-the-money (OTM).
Let’s assume that we are currently bullish on Tesla, trading at $693.40 and expect the stock to rise. So we buy a call option at the strike price of $700, expiring on January 8, 2021.
Step – 7: Type the number of contracts you want to trade and then click on the estimate order button to place the order. By default, Robinhood takes the limit order price, i.e. the bid and ask price average.
While trading options, you should always consider some important factors that affect your trade success rate and options price
Robinhood Trading Journal By Tradervue
You can track the performance of your position with many of our templates and research tools. Various integrated functions such as analytical, historical and streaming help you do analytical research and fundamental research. Various utility functions, stock screener, charts, research tools, options chains, OTC stocks (penny stocks), financial statements, etc., help in analysis and comparison, which increases the success rate of trading.
None of the content published on constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. The author offers no professional advice of any kind. The reader should consult a professional financial advisor to determine their suitability for any strategies discussed here.
This article is written to help users gather the required information from various sources deemed to be an authority on their content. The trademarks, if any, are the property of their owners, and no representations are made.
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What Is Robinhood, And How Does It Work
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