How to Enable Options Trading on the Robinhood App

You need to enable options trading on the Robinhood app before you start trading them. Robinhood does this to protect newer traders, as they’re more likely to experience big losses when options trading.

That’s no good for Robinhood either.

How do you start trading options on your Robinhood account? Read on to find out!

New to options trading? Learn more about the basics of options trading first.

How to Enable Options on Robinhood

When you open a Robinhood account, options trading isn’t available right off the bat. You need to activate it first.

This is a common broker practice, because advanced options strategies deal in higher levels of leverage. Your broker needs to trust that you know what you’re doing.

Here’s how to start accessing the options market on Robinhood’s mobile platform and website:

Step 1: Click “Account” on the App Home Screen

First, log into your account and click the Account option on the home screen.

Step 2: Find the “Settings” Option in the Drop-Down Menu

In the Account menu, click on Settings.

Step 3: See if “Options” Are Already Available for Your Trading Account

You should see an Investing button inside your Settings page. If you’re not already signed up, you should see a Get Options Trading button. 

Step 4: Press “Enable” if Options Are Available for Your Trading Account

Click on Get Options Trading. Then verify your credentials and answer the questions. These questions gauge your trading experience and knowledge, as well as your financial situation.

Click Accept when you’ve answered all the questions. Robinhood will review your answers and investment profile. They’ll contact you soon after. If you’re approved, you’ll be allowed to trade options on Robinhood.

Read this guide to options trading on Robinhood once you’re approved.

Why Can’t I Enable Option Trading on Robinhood?

You likely can’t enable options trading on Robinhood because you don’t have enough experience. Robinhood reviews every request for options trading, just like other brokers.

The review process is a risk management measure. This helps online brokers protect beginner investors from losing money on options trades, and prevents the broker from losing money in the process too.

Need to redo your options trading questionnaire? Learn how options trading works before trying again.

Options Approval Levels

Robinhood has two levels of options trading approval.

New options traders start at Level 2 and have access to basic options trading strategies. This is the lowest level for options transactions. Examples of basic options strategies include:

• Covered calls
• Covered puts
• Long calls
• Long puts

Level 3 approval gives access to complex strategies like:

• Credit spreads
• Debit spreads
• Iron condors
• Iron butterflies

How to Close Positions on Robinhood

Closing a position means you’re selling an options contract to the market. Here’s how you do it on the Robinhood brokerage platform:

1. Use the Search menu to find the stock you want to close the position on.
2. Click on the stock to check its details.
3. Tap the Trade menu on the stock details page.
4. Choose Trade Option, then the Call Option button to sell your contracts.

Want to learn more about options? Sign up for my former student Mark Croock’s Evolved Trader program!

Enabling Options on Robinhood FAQs

Believe it or not, this is the easy part…

How do you activate options trading on the Robinhood website?

Here’s how you activate options trading on the Robinhood website:

1. Log into the Robinhood website.
2. Choose Accounts, then go to Settings.
3. Click Investing on the side menu.
4. Select Get Options Trading if you’re not already approved for options trading.
5. Verify your account details.
6. Select Continue and answer the questions that follow, about trading knowledge and your financial situation.
7. Click Accept to submit your questionnaire.
8. Wait for Robinhood to complete their review process and contact you. If you’re approved, you’ll be able to trade options.

How do you activate options trading on the Robinhood app?

Here’s how you activate options trading on the Robinhood app:

1. Log into the Robinhood trading app.
2. Open the Investing menu from the hamburger menu on the top left.
3. Click on Enable Options Trading.
4. Select Sign Up if you’re not already approved for options trading.
5. Verify your account details.
6. Complete the qualifying questionnaire. You need to answer questions about your trading knowledge and disclose financial information.
7. Click Accept to submit your questionnaire.
8. Wait for Robinhood to complete their review process and contact you. If you’re approved, you’ll be able to trade options.