Options trading requires a separate account level and approval from Robinhood
Robinhood does not turn on options trading automatically. You have to request it, and Robinhood has to approve your request. The process takes place inside the app or website — there is no separate form to mail or email. Once you request it, Robinhood usually responds within one business day, though approval is not may provide.
Robinhood offers options trading at three different levels, each with different rules about what you can trade and how much risk you can take. Level 1 is the most basic and lets you sell covered calls and cash-secured puts. Level 2 adds spreads. Level 3 adds naked calls and puts. Most people start at Level 1 or Level 2. You request the level you want, and Robinhood decides whether to grant it based on your trading history and account details.
Key Takeaways
- You request options trading inside the Robinhood app or website under Account Settings, not by calling or emailing Robinhood.
- Robinhood offers three levels of options trading, and you choose which level to request — Level 1 is most restrictive, Level 3 is least restrictive.
- Approval usually takes one business day but is not automatic; Robinhood reviews your account history and trading experience before deciding.
- Once approved, you can begin placing options trades immediately, but you must have enough cash or buying power to meet the margin requirements for each trade.
Steps to request options trading in the Robinhood app
Open the Robinhood app and tap the Account icon at the bottom right. Scroll down and tap "Account Settings." Look for the section labeled "Options" or "Options Trading" — the exact wording varies by app version. Tap it to see your current status and a button that says "Request Options Trading" or "Enable Options."
Tap the button to start the request. Robinhood will show you the three levels and ask you which one you want. Read the description of each level carefully, because the rules are different. Once you choose, Robinhood will ask you to confirm your choice and may ask a few questions about your trading experience. Answer honestly — Robinhood uses this information to decide whether to approve you.
After you submit the request, you will see a confirmation message. Robinhood usually responds within one business day. Check your email for a notification, or go back to Account Settings and look at the Options section to see if your status has changed to "Approved."
Steps to request options trading on the Robinhood website
Log in to your Robinhood account on the website. Click your profile icon or initials in the top right corner. Click "Account Settings." Look for "Options" or "Options Trading" in the left menu or in the main settings area.
Click on it to see your current options status. You will see a button to request options trading if you have not already. Click it, choose your desired level from the list, and answer any questions Robinhood asks about your experience. Submit the request. You will receive an email confirmation, and Robinhood will notify you by email when they have made a decision.
What the three options levels mean
Level 1 lets you sell covered calls (sell the right to buy stock you already own) and sell cash-secured puts (sell the right to buy stock, with cash set aside to buy it if the buyer exercises). You cannot buy calls or puts. This level is the most conservative and is often approved for newer traders.
Level 2 adds the ability to buy calls and puts, and to trade spreads (buying and selling options at the same time to limit your risk). You still cannot sell naked calls or puts. This level requires more trading experience and is less commonly approved on the first request.
Level 3 lets you sell naked calls and puts — meaning you sell the right to buy or sell stock without owning the stock or having cash set aside. This is the highest risk level and is rarely approved for accounts with little trading history. Robinhood is most likely to deny Level 3 requests or ask you to start at a lower level first.
What happens if Robinhood denies your request
If Robinhood denies your request, you will receive an email explaining why. Common reasons include insufficient trading history, a low account balance, or a pattern of risky trades. Robinhood does not always explain the exact reason, but the email will tell you whether you can reapply and when.
If you are denied, you can usually request again after 30 days. Before you do, build your trading history by making regular stock trades and holding positions for longer periods. A larger account balance also helps. If you were denied for Level 3, try requesting Level 1 or Level 2 instead — approval at a lower level makes it easier to upgrade later.
Margin requirements and buying power for options trades
Options trades require margin — money you borrow from Robinhood to make the trade, or money you set aside to cover a potential loss. The exact amount depends on the type of trade. Selling a covered call requires you to own the stock. Selling a cash-secured put requires you to have cash equal to the strike price times 100 (since one options contract covers 100 shares).
Robinhood shows you how much buying power each trade will use before you place it. If you do not have enough buying power, the trade will be rejected. You can add cash to your account or close other positions to free up buying power. Margin interest applies if you borrow money, so check Robinhood's current margin rates before you trade.
Common reasons Robinhood denies options requests
Robinhood denies options requests for several reasons. The most common is insufficient trading history — if your account is brand new or you have made very few trades, Robinhood may want to see more activity first. A low account balance (usually under $2,000) can also result in denial, because options trades require enough money to cover margin requirements.
Pattern of risky behavior is another reason. If your account shows frequent day trading, large losses, or trades that suggest you do not understand the risks, Robinhood may deny your request. Finally, if you request Level 3 immediately, Robinhood is likely to deny it and suggest you start at Level 1 or Level 2 instead. This is not permanent — you can upgrade after proving you understand how to trade options safely.
Frequently Asked Questions
How long does it take for Robinhood to approve options trading?
Robinhood usually responds within one business day. Some approvals come through within hours. If you do not hear back after two business days, check your email spam folder or log into the app to see if your status has changed. If it has been longer than three business days, contact Robinhood support through the app.
Can I request options trading if my account is brand new?
You can request it, but Robinhood is unlikely to approve it. Most new accounts need at least a few weeks of trading history and a few trades on record before Robinhood will turn on options. Wait until you have made at least five to ten stock trades and your account has been open for at least 30 days, then request again.
What if I want to upgrade from Level 1 to Level 2 later?
Go back to Account Settings and look for an option to upgrade your options level. You can usually request an upgrade after you have traded options at Level 1 for a while. Robinhood will review your options trading history and decide whether to approve the upgrade. Upgrades are usually faster than initial approvals.
Do I need a minimum account balance to trade options?
Robinhood does not publish a strict minimum, but accounts with less than $2,000 are rarely approved for options trading. Even if you are approved, each options trade requires enough buying power to cover the margin requirement. A larger account balance makes it easier to place multiple trades without running out of buying power.
Can I trade options on all stocks in Robinhood?
No. Robinhood only offers options on stocks and ETFs that meet certain volume and price requirements. Penny stocks and very new companies usually do not have options available. When you search for a stock, the app will show you whether options are available for it. If options are not available, you cannot trade them even if your account is approved.