Robinhood offers index options for some of the more popular market indices, including the S&P 500 index (SPX), CBOE volatility index (VIX), S&P 500 mini index (XSP), Russell 2000 (RUT), and Nasdaq 100 (NDX).

You can find what’s currently available in the Index options list or by using the Search tool.

Unlike stock options, index options don’t have underlying shares. Additional key differences include:

• Trading hours and expiration differ from equity options
• No early exercise or assignment (index options are European-style and get exercised or assigned automatically if in-the-money at expiration)
• Cash only settlements (no delivery of shares)
• Incur additional trading fees (i.e. exchange fees)
• No dividends for index options

Trading hours for index options are 9:30 AM-4:15 PM ET (or 1:15 PM ET for half-days), Monday-Friday (excluding holidays), except on expiration dates:

• AM expirations: Trading stops at 4:15 PM ET on the last trading day before the expiration date.
• PM expirations: Trading stops at 4 PM ET (or 1 PM ET for half-days) on the expiration date.

Index options can expire at market open (AM-expiring options) or at market close (PM-expiring options). Within your Robinhood investing accounts, all AM-expiring options will include AM next to the expiration date.

Index options cannot be exercised or assigned early. If they’re in-the-money based on the settlement value on expiration date, they’re automatically exercised or assigned. Index options are also settled in cash, meaning your account will be debited or credited the corresponding settlement amount.

Some indices may have different root symbols depending on their expiration date and time. All root symbols for the same underlying index are grouped together in the same options chain on Robinhood.

For example, the SPX index has 2 root symbols: SPX options have an AM expiration and SPXW options have a PM expiration. Both SPX and SPXW options will show on the same options chain with consolidated expiration dates, as they are all based on the same SPX underlying.

Options transactions that result in US-sourced income may result in Non-resident Alien (NRA) withholding that is reportable to the IRS (Internal Revenue Service, the tax authority of the US) and will generate a tax form. For more details, check out US tax documents FAQ.

Robinhood UK doesn’t provide tax advice. For specific questions, seek advice.