Options in Robinhood Retirement

Now you can add the power of options trading to your Robinhood Retirement account. Options in retirement accounts work very similarly to how they work in a brokerage account—you won’t pay commission or per contract fees, and enjoy the same clean, simple-to-use design.

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.

Note

We’re in the process of making options in Robinhood Retirement available to all eligible customers.

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Which options strategies are available in Robinhood Retirement?

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

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How do I enable options in Robinhood Retirement?

Options need to be enabled in each account you have at Robinhood. Even if options are already enabled in your Robinhood brokerage 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 (brokerage, traditional IRA, or Roth IRA)
  5. Scroll down to Options Trading and select Enable Options Trading
Note

You’ll be able to seamlessly switch between trading accounts. Before you place a trade, make sure you’ve chosen the correct account.

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Disclosures

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 customer with a Robinhood brokerage account in good standing.

Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Robinhood Financial does not guarantee favorable investment outcomes and there is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing. To learn more about the risks associated with options, read the Characteristics and Risks of Standardized Options before you begin trading options. Supporting documentation for any claims, if applicable, will be furnished upon request.

Also be aware of the risks listed in the following documents: Day Trading Risk Disclosure Statement and FINRA Investor Information.

All investments involve risk and loss of principal is possible. Brokerage services are offered through Robinhood Financial LLC (member SIPC), a registered broker dealer. Robinhood Securities, LLC (member SIPC), is a registered broker dealer and provides brokerage clearing services. All are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’). © 2023 Robinhood Markets, Inc.

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