Options trading FAQ | Robinhood

Options trading FAQ

The following are some of the most frequently asked questions about trading options with Robinhood.

Why can’t I place a market order?

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.

Placing limit orders will give your order a better chance of being executed at the price you want. This way, you’ll know how much you’ll pay to buy a contract.

Keep in mind, limit orders aren't guaranteed to execute.

Why are some orders getting partial fills?

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.

Keep in mind

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.

Why don't all stocks have options?

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.

Keep in mind

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.

Why update my investment profile before I can start?

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.

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RHF, RHY, RHC, RCT, RHG, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, RHG, and RHS are not banks. Investing products offered by RHF are not FDIC insured and involve risk, including possible loss of principal.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

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.

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All investing involves risk.

Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker dealer (member SIPC), and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC).

Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Please review a list of RHC's licenses for more information. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.

The Robinhood spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Please review a list of our licenses for more information.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

Robinhood Gold Card is subject to credit approval and underwriting. Robinhood Gold Card is offered by Robinhood Credit, Inc., and is issued by Coastal Community Bank, pursuant to a license from Visa U.S.A. Inc. Robinhood Credit, Inc. (“RCT”), is a financial technology company, not a bank.

Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC (“RHG”).

RHF, RHY, RHC, RCT, RHG, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, RHG, and RHS are not banks. Investing products offered by RHF are not FDIC insured and involve risk, including possible loss of principal.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

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.

RO 3846636

Robinhood, 85 Willow Road, Menlo Park, CA 94025.© 2024 Robinhood. All rights reserved.