Robinhood makes options trading in cash accounts available to eligible clients
Robinhood announces that options trading in cash accounts is now available to all eligible Robinhood customers. This is one of the most requested features from Robinhoods advanced customers.
With a cash account, customers can only use deposited cash or settled funds to make trades. This means advanced customers with a cash account can trade stocks, ETFs, and now options without worrying about their number of day trades.
Options trading in cash accounts is a standard industry offering. Options trading entails significant risk and is not appropriate for all customers, which is why all interested customers must apply for options access and have their account reviewed to determine if they are qualified.
Customers who wish to trade options in a cash account can open the app and navigate to the Account tab → Menu → Investing → Day trade settings → Switch to cash account. On Web, navigate to Account → Settings → Investing → Account type → Switch to cash account.
Over the past several months, Robinhood has launched important features and services for its most advanced customers. The list includes:
- Brokerage Cash Sweep: All eligible brokerage customers earn 1% interest on uninvested cash, helping them put their money to work and earn extra income.
- Stock Lending: By enabling stock lending, customers give Robinhood permission to lend out any fully paid stocks in their portfolio. Robinhood does the work of finding interested borrowers, and customers get paid when there’s a match.
- Options Trading Essentials YouTube Series: Because options trading carries significant risk, Robinhood launched this educational YouTube series to help people understand the fundamentals.
- Extended Hours Trading: As an important step towards one day offering 24/7 equities investing, Robinhood launched new extended hours that allow customers to trade from 7 a.m. to 8 p.m. ET on trading days.
- Shareholder Q&A: The service, powered by Say, is available directly within the Robinhood app. It enables customers to ask questions to the leaders of the participating companies that they invest in–right within the app.
- Options Rolling: There are a number of reasons a customer might choose to roll an options position, but typically the goal is to extend duration. This allows a customer to close a position (thereby realizing any gains or losses) prior to expiration while establishing a similar position further out in time. Note: you cannot roll options from a cash account.