Now qualified traders can add the power of options trading to your Robinhood Retirement account. Options in retirement accounts function very similarly to your individual and joint investing accounts—you won’t pay commission or per contract fees for options on stocks or ETFs.

However, given the tax advantages of retirement accounts, some investors might trade options differently in them—hedging with long puts, generating income with covered calls, and more. Check out Options strategies for retirement for more details.

Approved customers can currently trade Level 2 strategies in Robinhood Retirement. This includes long calls, covered calls, long puts, and short puts. Level 3 strategies, such as straddles, strangles, vertical spreads, and calendar spreads, aren’t available yet in Robinhood Retirement.

Options need to be enabled in each account you have at Robinhood. Even if options are already enabled in your Robinhood investing account, you’ll also need to enable options in your Robinhood Retirement account. Keep in mind, options trading is subject to eligibility requirements.

1. Go to Account (person icon)
2. Go to Menu (3 bars) or Settings (gear icon)
3. Select Investing
4. If you have multiple accounts, select which one you’d like to enable options in (investing, traditional IRA, or Roth IRA)
5. Scroll down to Options Trading and select Enable Options Trading

Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice.

The Robinhood IRA is available to any of our US customers with a Robinhood investing account in good standing. Note, if you have a B-notice, you won't be able to open an IRA until your account restrictions are lifted.