Options in Robinhood Retirement
Now qualified traders can add the power of options trading to your Robinhood Retirement account. Options in retirement accounts function very similarly to your non-investing 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.
We’re in the process of making options in Robinhood Retirement available to all eligible customers.
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.
You’ll be able to seamlessly switch between trading accounts. Before you place a trade, make sure you’ve chosen the correct account.
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 U.S. 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.
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’).