How To Buy Call Options On Robinhood

How To Buy Call Options On Robinhood

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Someone on YouTube noted that many of the tutorials on how to use Robinhood are only about the mobile version.

How To Buy Call Options On Robinhood

How To Buy Call Options On Robinhood

Let’s break down how to trade stocks and call and put options from the desktop version of your Robinhood account.

Robinhood Options Fees (2023)

If you don’t have a Robinhood account yet and want to get FREE stocks, click here and use our link to get free stock when you open an account with them.

After logging in, you will see basic information about your account. On the left you will see your trading power and on the right you will see your watchlist.

At the top, you’ll notice how much TSLA is trading for, a chart below that, and more information about the company below that.

If you are approved to trade options and wish to trade options on this stock, click the button to the right “Trade TSLA Options”. (Pictured above)

How To Buy Option Contracts On Robinhood And Whether You Should

Pressing this button will show you what is available for the options trade. The first thing you choose is whether you are buying or selling, and whether you want a call option or a put option.

You would then look at the strike price at which you would have the right to buy or sell the TSLA at the time of the expiration date. At the far right in the same column, the price of that option will be displayed.

Break Even shows you the price the stock will need to be at on the expiration date for your option to break even.

How To Buy Call Options On Robinhood

BUT you don’t necessarily have to wait until the expiration date, your option can gain in value if the stock moves higher faster. Technically, you could sell it sooner.

Advanced Options Strategies (level 3)

After selecting the desired option, you will see a summary on the right side. After reading this, press the green “continue” button.

As you can see, the features are almost identical to the call options. But in this case, you think the stock will go down, so you chose the put option.

The breakout would show you how much the stock has to drop to even get to what you spent to buy the option.

After choosing the price of the put option you are choosing, you will be asked how many contracts you would like to buy on the right.

How Robinhood Is Affecting The Stock Market

For example, if you wanted to do a Bull Call Spread, you would first choose the call option you want to buy on a specific stock. And then you would sell the out-of-the-money call.

I hope this was able to give you an overview of how to use the desktop version of Robinhood for options trading.

If you are ready to take it to the next level and want to learn more about options trading or even how to get started in the stock market, you must check out my premium courses, coaching and community at Power Trades University.

How To Buy Call Options On Robinhood

There are many other brokerage accounts and I have other tutorials on how to use them. Click the links below for free tutorials.

Robinhood Trade Options

« Previous Post How To Trade Stocks On Your Phone Using Webull Next Post » EP 062: Growing Up Black in Detroit, America I’ve been trading options on Robinhood for a little over a month and I’m down $1,000 but I’m learning every day.

For those who need to know, ten years ago I traded stock options for a firm as a professional trader. I was able to build a portfolio from the ground up and eventually, after a few years, there was a quarter of a million cash in the account.

But after a series of big mistakes and ignoring risk-reward relationships, I lost over 75% of my portfolio in a matter of months.

Then I left the market to go to graduate school and write a book, which I finished in 2021.

Robin Hood Option On Tesla

Now I’m back, but without the professional software I had with my business in Chicago. Without the edge I had, I am forced to rely again on risk-reward relationships.

For those who don’t know what stock options are, they are stock derivatives. Basically, you are buying or selling the right to buy or sell shares at a fixed price, the strike price. Each 1 option is equal to 100 shares. If you need more help figuring out what the option is, I suggest you take the time to educate yourself and then come back.

If you’re still with me, I’m sure I can relaunch the account and I’ll detail the process and all my trades here.

How To Buy Call Options On Robinhood

The market is particularly volatile right now, which is good for day traders and trading in general. What is scary for the average trader is an ideal environment for the experienced trader. Money to be made!

Robinhood (hood) Gamma Squeeze

I document my transactions for my benefit and yours. I need to outline my thoughts on each trade and you can benefit from my thinking.

I started looking at my watch list this morning. I had no positions today. I told myself that if Tesla hits $860, I will buy a put. I missed the move to $860 because I felt their options were too premium and passed. But I put the option on my watchlist and finally bought on March 11th $795…

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How To Buy Call Options On Robinhood

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A reliable strategy to make money day trading (no, really). Day trading. We were all warned about this. We have been told that “95% of day traders lose money”. Combine that with excessive… Robinhood is a free trading app that allows investors to trade stocks, options, exchange-traded funds, ADRs, and cryptocurrency for $0 commissions or fees. It was founded in 2013 by Vladimir Tenev and Baiju Bhatt. In 2015, it launched a mobile application. Its mobile app is easy to use. In 2017, Robinhood also launched its website.

As of 2020, it is worth $11.2 billion and has 13 million users. Most of her customers are young and inexperienced traders. In December 2017, it disrupted the entire online brokerage industry by providing free options trading in a mobile app. Since then, many online brokers such as Fidelity, Charles Schwab, TD Ameritrade, etc. offers $0 fees and commissions.

Step – 1: Enter the name of the stock you want to trade in the search box, for example Tesla.

Step – 2: You will see the interface like this. The current price of the stock you searched for will be displayed on the top left and a price chart will be displayed. You can analyze the price trend from 1 day to 5 years. If you scroll down, you will find information about the company.

Robinhood App Trading Guide (everything You Need To Know)

Step – 4: Then you will see different strike prices of call options. You can click on Buy/Sell and Call/Put and select the expiration date from the drop-down list. You can see that the current price of the underlying stock is in the middle of the option chain. Call options below the current price are considered in-the-money (ITM) and above the current price are considered out-of-the-money (OTM).

Let’s say we are currently bullish on Tesla, trading at $693.40 and expect the stock to go higher. Therefore, we are buying a Call Option at a Strike price of $700 that will expire on January 8, 2021.

Step – 7: Enter the number of contracts you want to trade and then click on the check order button to place your order. By default, Robinhood takes the limit order price, i.e. j. the average bid and ask price.

How To Buy Call Options On Robinhood

When trading options, you should always consider some important factors that affect the success of your trade and options prices

What Is A Bid/ask Spread?

You can track the performance of your position using many of our templates and research tools. Various built-in features like analytics, history and streaming help

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