Robinhood options trading explained clearly, including account setup, strategy types, execution process, risks, and timing importance.
Sectors & Industries
December 24, 2025
Table of Contents
Robinhood is one of the most popular platforms for retail options trading in the U.S. Its commission-free model and simplified interface make it easy for beginners to place trades without needing advanced tools or expensive software. This guide explains how options trading works on Robinhood, the strategies it supports, and what traders should understand before placing their first trade.
Before you can trade options, you must enable options trading in your Robinhood account.
On mobile, tap your profile icon, go to Investing → Options trading, and select Enable options trading.
On web, log in, open the account menu in the top-right corner, select Options trading, and enable it there.
You’ll answer questions about your investing experience, income, net worth, and goals. Based on your responses, Robinhood approves you for:
Once approved, your options level will appear in the app.
What is an option?
An option is a contract that gives the buyer the right—but not the obligation—to buy or sell a stock at a preset strike price before a specific expiration date.
Calls vs. Puts
Contract Size
Most U.S. equity options represent 100 shares per contract, while index options are typically cash-settled.
Once options trading is enabled, placing a trade is straightforward.
Options can be closed anytime before expiration. If an option expires out of the money, it expires worthless.
Robinhood supports most commonly used retail options strategies:
The Options Strategy Builder organizes these strategies and helps users construct multi-leg trades directly within the app.
Options trading carries significant risk.
Key principles:
Many losses occur not because the strategy is wrong, but because the trade is placed at the wrong time.
Robinhood offers commission-free options trading on U.S. stocks and ETFs.
Robinhood does not support futures, bonds, mutual funds, or OTC options.
Robinhood does a strong job handling execution. You can place trades quickly, manage positions easily, and avoid commissions. But options trading rewards timing more than almost any other market activity.
Many losing options trades aren’t wrong on direction—they’re wrong on when. Traders often:
Robinhood shows price action and news, but it doesn’t tell you whether a specific moment has historically been favorable for options.
Once traders understand how to place trades and structure strategies on Robinhood, the next step is improving context.
This is where some traders introduce event-driven research tools into their workflow—tools that focus on identifying moments when stocks have actually moved in the past, rather than reacting after the move happens.
One example is LevelFields AI.
LevelFields focuses on why stocks move, not just how they trade.
The platform continuously scans thousands of U.S. stocks for real-world events that have historically led to price movement and volatility, including:
When one of these events occurs, LevelFields alerts users and shows how similar events affected the stock in the past—average returns, win rates, and timeframes. For options traders, this helps narrow trades to periods when volatility has actually worked before, making it easier to choose expirations, manage risk, and avoid paying for time decay during uneventful stretches.
Robinhood remains the execution layer. LevelFields becomes the timing and context layer.
Robinhood is a solid platform for learning and executing options trades. It removes friction, keeps costs low, and supports a wide range of strategies.
But options trading isn’t just about structure—it’s about timing. Many traders eventually realize that pairing Robinhood’s execution with event-driven context can improve decision-making, especially for short-term and options-based strategies.
Used together, the workflow is simple:
That separation—context first, execution second—is often where options trading becomes more disciplined and repeatable.
To start trading options on Robinhood, you must first enable options trading in your account.
In the app, tap your profile icon, go to Investing → Options trading, and request access. Robinhood will ask questions about your investing experience, income, and risk tolerance. Based on your answers, you’ll be approved for a specific options level. Once approved, options chains and contracts will appear directly on eligible stocks.
Robinhood may restrict options trading if:
Beginners are typically approved only for basic strategies, such as buying calls or puts, while advanced spreads require higher approval levels.
Most beginners start by buying call or put options, rather than selling options or using multi-leg strategies.
A common beginner approach is:
Beginners often struggle with timing, which is why many use tools that track earnings, buybacks, or other market-moving events to help narrow down when options tend to perform better.
Robinhood does not charge commissions to trade options.
However, there are still costs involved:
While trades are commission-free, options can still be expensive due to volatility and time decay.
Yes, it’s possible to trade options with $100, but choices are limited.
Low-priced options typically:
With a small account, risk management becomes critical. Many traders start with defined-risk trades and avoid holding contracts close to expiration unless they understand the risks.
Robinhood does not charge a standard $100 fee for trading.
When people mention a “$100 fee,” they are often referring to:
Robinhood is commission-free, but users should always review trade confirmations to understand the full cost of any transaction.
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