Options trading FAQ
The following are some of the most frequently asked questions about trading options with Robinhood.
Market orders for options contracts will typically fill during regular market hours, starting 15 minutes after market open (9:45 AM–4 PM ET). Orders for late close options will extend to 4:15 PM ET.
Limit orders for options contracts can fill during regular or extended trading hours. With limit orders, your order will only execute if it is able to do so at your limit price or better.
Keep in mind, limit orders aren't guaranteed to execute.
Your options order is most likely receiving a partial fill because it has low liquidity in the market. Low liquidity means not many people are trading the contract when you placed the order. Partial executions occur when not enough matching orders can fill an entire order at the specified price or better.
A buyer and seller must be on both sides of the trade for an order to execute, so your single order may be filled in multiple, partial executions. Also, your order might go unfilled if both a buyer and a seller can’t be matched even for partial executions.
Not all stocks can have options because of certain regulatory standards. For example, stocks with low prices, trading volumes, or market caps may not have options.
Robinhood doesn’t support options trading on stocks we don’t have on the platform. For a guide to eligible stocks on our platform, check out Investments you can make on Robinhood.
Before we can enable options trading in your account, we need to make sure your investor profile is up-to-date so we can determine if options investing is right for you. You don't need to change your investor profile if nothing has changed, we just need you to confirm it's up-to-date.
If you place an average of more than 390 listed options orders per trading day during a calendar month, applicable exchange rules require your orders to be designated as “Professional” for the following calendar month. This average is calculated across all of your accounts, including individual, joint, IRA and trust accounts. The designation also applies across all of these accounts.
Robinhood will continue to support your account if you are designated based on the rules.
While designated, your options orders don't receive the execution priority given to non-Professional orders. Your orders may also be subject to different routing methodologies. If your account is classified as a “Professional” options customer under options exchange rules, you'll be charged $0.50 for each options contract you buy or sell.
If your average daily options orders are 390 or less in subsequent calendar months, the “Professional” designation will be removed and all related impact no longer applies.
This rule applies only to options orders and does not apply to futures, equities, or crypto.
Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.