Robinhood empowers you to place options trades within your Robinhood account.

1. Search the stock, ETF, or index you’d like to trade options on using the search bar (magnifying glass)
2. Select the name of the stock, ETF, or index
3. Select Trade → Trade options on the detail page

You can learn about different options trading strategies by checking out Basic options strategies (Level 2) and Advanced options strategies (Level 3).

For existing options positions or pending orders, you can swipe to take the following actions in the app:

1. For an existing position:

• Swipe right to buy or open it

• Swipe left to sell or close it

  For a pending order:

• Swipe right to cancel it

• Swipe left to replace it

2. If applicable, update the trade details and swipe up to submit

There are many things to consider when choosing an option:

• The expiration date is displayed just below the strategy and underlying security. You can scroll right to see expirations further into the future.
• The strike prices are listed high to low and you can scroll up or down to see different strike prices.
• The premium (price) and percent change are listed on the right of the screen:
  • The value shown is the natural price (by default) or the mark price. Note that if there are no bids, the mark price will show as $0.01.
  • The plus or minus percentage (+/- %) change is today’s cost movement for the contract.
• The break-even point is where the underlying security needs to trade at expiration for you to break even on your investment, taking into account the current value (premium) of the options contract.
• The break-even percentage is the percentage change the underlying security would need to move for you to break even on the option at expiration.
• The chance of profit percentage is the probability of making a profit at the option’s current mark price if held until expiration.

You can place Good-til-canceled (GTC) or Good-for-day (GFD) orders on options. A GTC order remains open for 90 days unless you cancel it, or it’s filled. A GFD order is automatically canceled at market close on the day it’s placed if it doesn’t execute.

You can view the price (and determine the theoretical value) of an options contract in the following ways:

• Natural price is either the ask price (if you’re buying an option), or the bid price (if you’re selling an option)
• Mark price is the midpoint between the ask price and the bid price, and is sometimes used for simplicity

As a reminder, the bid price is the highest price other traders in the market are willing to pay for an asset at a moment in time, and the ask price (also known as the offer) is the lowest price traders are willing to accept for an asset at a moment in time.

By default, the Natural price is shown when buying and selling options, but you can change it to show the Mark price instead on the web or in the app:

• On the web, while placing a trade hover over the Price column title, select Edit (pencil icon), and then select Mark price.
• In the app, while placing a trade select Edit (pencil icon), and then in Default price, select Mark price.

Regardless of your default setting, mark price will still be used for:

• Multi-leg orders
• Options rolling
• Calculating current price, total return, and other information regarding contracts you currently hold (e.g. your portfolio return)

Options are complex products, involve significant risk and are not suitable for all investors. You could lose more than your initial invested capital. You should only invest in financial products that match your knowledge and experience. Please review Characteristics and Risks of Standardized Options prior to engaging in options trading.

Review the FINRA Options investing Information to learn more about the risks.