How to place a put order on Robinhood

To buy a put option on Robinhood, search for the stock or ETF you want, tap or click the options chain icon, select the expiration date and strike price you want, choose "put," enter the number of contracts, and review the order before submitting it. The entire process takes about two minutes once you know which put you're looking for.

Robinhood displays puts alongside calls in the same options chain. A put gives you the right to sell shares at a fixed price (the strike price) by a certain date (expiration). You pay a premium upfront — the price shown in the bid-ask column — and that's your maximum loss on that contract.

The order sits in your queue until someone on the other side accepts your bid, or the market price moves to meet it. Most puts fill within seconds during market hours, but less-traded options or wide bid-ask spreads can cause delays. You can cancel an unfilled order at any time.

Key Takeaways

  • Search the underlying stock, tap the options icon, pick your expiration date and strike price, select "put," and enter the contract quantity before submitting.
  • The premium you pay upfront is the most you can lose on a single put contract, regardless of how far the stock price falls.
  • Orders fill when the market price matches your bid or someone accepts it; most fill instantly during trading hours but can take longer for illiquid options.
  • Robinhood requires options approval at Level 1 or higher; Level 1 allows covered calls and cash-secured puts, while Level 2 and above allow naked puts and spreads.

Understanding options approval levels on Robinhood

Robinhood assigns options approval levels based on your account type and trading experience. You must have at least Level 1 approval to trade any options at all, including puts. Level 1 allows you to buy puts outright and sell covered calls, but does not allow you to sell naked puts or use spreads.

To request a higher approval level, go to your account settings, find the options section, and answer Robinhood's questions about your experience and investment goals. Robinhood typically grants or denies the request within one business day. If denied, you can reapply after 30 days or contact support to understand why.

Buying puts — as opposed to selling them — is one of the simplest options strategies and does not require high approval. You are only risking the premium you paid, not borrowing shares or taking on unlimited loss. This is why even new options traders can buy puts at Level 1.

What happens when you buy a put

When your put order fills, Robinhood deducts the premium from your cash balance immediately. The put then appears in your positions list with a quantity (number of contracts), the strike price, and the expiration date. As the stock price moves, the put's value changes — it gains value if the stock falls and loses value if the stock rises.

You have three choices before expiration: sell the put to close it and lock in a gain or loss, let it expire worthless (if the stock stays above your strike), or exercise it to sell shares at the strike price. Most traders close puts before expiration rather than exercise them, because the time value remaining in the contract often makes selling more profitable than exercising.

Robinhood will automatically exercise an in-the-money put at expiration if you have enough cash to cover the sale, or it will sell the put for whatever value remains. Check your expiration dates regularly so you are not surprised by an automatic exercise.

Bid-ask spreads and order fills

Every put has a bid price (what buyers will pay) and an ask price (what sellers want). The difference between them is the spread. On liquid options — those with high trading volume — the spread is tight, often just a penny or two. On less-traded options, the spread can be 10 cents, 50 cents, or wider, which cuts into your profit or adds to your loss.

Robinhood lets you place a limit order at any price between the bid and ask. If you bid below the current ask, your order waits in the queue. If you bid at the ask price, your order usually fills instantly. Placing a limit order below the ask can save money on tight spreads but may never fill if the stock moves against you.

During the first and last 30 minutes of the trading day, spreads often widen because volume drops. If you are buying a put on a less-popular stock, placing your order during the middle of the day (10 a.m. to 3 p.m. Eastern) usually results in a tighter spread and faster fill.

Expiration dates and time decay

Puts expire on the third Friday of each month, though Robinhood also offers weekly expirations on many stocks. The closer a put gets to expiration, the faster it loses value — a concept called time decay. A put that is out of the money (stock price above the strike) loses value every day, even if the stock price does not move.

This works in your favor if you sell a put, but against you if you buy one. If you buy a put expecting the stock to fall and it does not move, you will lose money simply because time is passing. For this reason, most put buyers set a target price or a time limit: if the stock does not fall by a certain date, they close the put and move on.

Robinhood shows the days to expiration in the options chain. Puts expiring in one week or less are risky because time decay accelerates. Puts expiring in 30 to 60 days give you more time for the stock to move but cost more upfront because they retain more time value.

Calculating your maximum loss and break-even point

Your maximum loss on a put is the premium you paid, multiplied by 100 (since each contract represents 100 shares). If you pay $2 per contract for a put, your maximum loss is $200. The stock could fall to zero and you would still only lose that $200.

Your break-even point is the strike price minus the premium. If you buy a $50 put for $2, your break-even is $48. The stock must fall below $48 for you to make money. Between $48 and $50, you lose money. Above $50, the put expires worthless and you lose the full premium.

Robinhood displays your current gain or loss in real time as the stock price moves. The "Greeks" — delta, theta, gamma, and vega — show how the put's value responds to changes in the stock price, time, and volatility. You do not need to understand the Greeks to buy puts, but learning them helps you predict how your position will move.

Common mistakes when buying puts on Robinhood

The most common mistake is buying puts on illiquid stocks or using very short expiration dates. A put on a penny stock or a stock with low trading volume may have a spread so wide that you lose money the moment you buy it. Similarly, a put expiring in three days has almost no time value left, so the stock must fall sharply and immediately for you to profit.

Another mistake is holding puts through expiration without a plan. If a put is in the money at expiration and you do not have enough cash to cover the sale of 100 shares, Robinhood will sell the put for whatever value remains — which may be less than you hoped. Set calendar reminders for expiration dates or close puts a few days before they expire.

Beginners also sometimes confuse puts with short selling. Buying a put is not the same as shorting the stock. A put has a defined maximum loss (the premium), while a short sale has unlimited loss potential if the stock rises. Puts are a safer way to bet on a stock falling.

Frequently Asked Questions

Do I need a minimum account balance to buy puts on Robinhood?

Robinhood does not enforce a minimum account balance for buying puts. However, you must have enough cash to cover the premium. If you have $500 in your account and a put costs $200, you can buy it. Robinhood does not require a margin account or minimum equity to trade options, though margin accounts do offer more flexibility.

Can I buy puts on stocks I don't own?

Yes. Buying a put does not require you to own the stock. You are simply purchasing the right to sell at a fixed price. This is how most traders use puts — to profit if a stock falls or to protect against a fall in a stock they do own.

What's the difference between buying a put and shorting a stock?

Buying a put limits your loss to the premium you paid. Shorting a stock has unlimited loss potential if the price rises. Puts also expire, so your bet has a time limit. Shorts can stay open indefinitely. Puts are generally safer for beginners.

How long does it take for a put order to fill on Robinhood?

Most put orders fill within seconds during market hours if you bid at or near the ask price. Orders placed at lower limit prices may take minutes or hours, or may never fill. After-hours orders may not fill until the market opens the next day.

What happens if I don't close my put before expiration?

If your put is out of the money, it expires worthless and you lose the premium. If it is in the money, Robinhood automatically exercises it if you have enough cash, or sells it for whatever value remains. Check your expiration dates and close puts a few days before expiration if you want to avoid surprises.