You need to request options access separately and meet Robinhood's requirements before you can place your first trade

Robinhood does not automatically give you options trading permission when you open an account. You have to request it through the app or website, and Robinhood will review your application based on your experience level, account type, and the answers you give about your trading knowledge. Once approved, you choose which options level you want — Robinhood offers four different permission tiers, each allowing riskier strategies than the last. The whole process usually takes a few minutes to a few hours, though Robinhood can deny your request or approve you at a lower level than you asked for.

Your account must have at least $2,000 in buying power before Robinhood will approve any options level. Buying power is the cash and margin available to you — it is not the same as the total value of your account. If your account is below $2,000, you will need to deposit more money or wait for existing trades to settle before you can request access.

Key Takeaways

  • You must request options access through the Robinhood app or website; it is not turned on by default for any account type.
  • Robinhood has four options levels, ranging from covered calls and cash-secured puts (Level 1) to spreads and naked calls (Level 4), and you choose which level to request.
  • Your account must have at least $2,000 in buying power before Robinhood will approve any options level.
  • Robinhood reviews your request based on your answers about trading experience, your account history, and your net worth, and can approve, deny, or approve you at a lower level than requested.
  • Once approved, you can start placing options trades immediately, but you cannot change your options level for 30 days after approval.

The four options levels and what each one lets you trade

Level 1 covers the most conservative strategies: buying calls and puts, and selling covered calls (calls against stock you already own) or cash-secured puts (puts backed by cash in your account). Most people start here. This level is designed for traders who want to own options or sell options they can fully cover with existing holdings or cash.

Level 2 adds spreads — buying and selling options at different strike prices or expiration dates in the same trade. This includes call spreads, put spreads, and calendar spreads. Spreads reduce your maximum loss because you are both buying and selling. Level 2 is for traders who understand how offsetting positions work and want to limit their risk.

Level 3 allows naked calls and puts — selling options without owning the underlying stock or holding cash to cover them. This is where your loss can exceed your initial investment. Robinhood requires higher net worth and more trading experience to approve Level 3. Your potential loss is theoretically unlimited on naked calls and very large on naked puts.

Level 4 is the highest tier and includes all strategies available on Robinhood, including spreads and naked positions on the same account. Very few individual traders request or receive Level 4. This level is typically reserved for experienced traders with substantial account balances and proven trading history.

How to request options access in the Robinhood app

Open the Robinhood app and tap the Account icon at the bottom right. Scroll down and tap "Account Settings," then look for "Options" or "Options Trading." Tap "Request Options" if you do not have access yet, or "Upgrade Options Level" if you already have access at a lower level and want to move up.

Robinhood will show you the four levels and ask you to choose which one you want. Read the description of each level carefully — the higher levels allow riskier trades and require more experience. Once you choose, Robinhood will ask you a series of questions about your trading experience, how long you have been investing, your annual income, your net worth, and your employment status. Answer honestly and accurately. Robinhood uses these answers to decide whether to approve you and at what level.

After you submit your request, Robinhood usually responds within a few hours, though it can take up to a full business day. You will see the decision in the app under Account Settings. If you are approved, your options level is active immediately and you can place trades right away. If you are denied or approved at a lower level than you requested, you can request again after 30 days have passed.

Account requirements and what Robinhood reviews

Beyond the $2,000 minimum, Robinhood looks at your account history and trading behavior. If you have a pattern of violating Robinhood's rules — such as making more than three day trades in five business days on a cash account, or repeatedly closing positions at a loss — Robinhood may deny your request or approve you at a lower level. Your account also cannot have any open regulatory violations or pending disputes with Robinhood.

If you have a Robinhood Gold margin account, you have more buying power available, which can help your application. However, margin accounts come with interest charges and additional risk, so do not open one just to meet the $2,000 minimum. A regular cash account with $2,000 is sufficient to get approved for options trading.

What happens after you are approved

Once approved, you can place options trades immediately. Open the Robinhood app, search for the stock or ETF you want to trade, and tap "Trade." Scroll to the "Options" tab. You will see a chain of available contracts — different strike prices and expiration dates. Tap the contract you want, choose whether you are buying or selling, enter the number of contracts, and review the details before you submit.

Robinhood will show you the bid-ask spread (the difference between what buyers are offering and what sellers are asking), the break-even price, and your maximum profit and loss. Read these numbers carefully before you confirm the trade. Options trades settle in one business day, so the money or shares will not move until the next day. You cannot change your options level for 30 days after approval. If you want to upgrade to a higher level after that waiting period, you can request again through Account Settings. Downgrades are usually instant.

What to do if your request is denied

If Robinhood denies your request, the app will show a reason — usually "insufficient experience," "insufficient net worth," or "account does not meet requirements." You cannot appeal the decision directly, but you can request again after 30 days have passed. In the meantime, you can strengthen your case by trading stocks, learning about options strategies, and increasing your account balance if possible.

If you were approved at a lower level than you requested, you can still trade at that level. Many traders start at Level 1 and request an upgrade after a few months of successful trading and account growth. Robinhood is more likely to approve an upgrade if your account balance has increased and you have a clean trading history with no violations or disputes.

Options trading costs and expiration rules on Robinhood

Robinhood does not charge a commission to open or close an options trade. However, you still pay the bid-ask spread — the difference between what you pay to buy and what you receive when you sell. On liquid options (those with high trading volume), the spread is usually small. On illiquid options, the spread can be wide, which means you lose money just by entering and exiting the trade.

Each options contract represents 100 shares of the underlying stock. If you buy one call contract, you are controlling 100 shares. Robinhood will show the total cost in the app, but remember that you are paying per contract, not per share. Options expire on the third Friday of each month for standard monthly options, or on other dates for weekly options. If you hold an option until expiration and it is in the money (profitable), Robinhood will automatically exercise it — meaning you will buy or sell the underlying shares. If you do not want this to happen, you must close the position before expiration.

Frequently Asked Questions

How long does it take to get options approval?

Robinhood usually responds within a few hours, though it can take up to a full business day. Once approved, your options level is active immediately and you can place trades right away. If denied, you can request again after 30 days.

Can I get approved for options if my account has less than $2,000?

No. Robinhood requires a minimum of $2,000 in buying power before it will approve any options level. Deposit more cash or wait for trades to settle. Opening a margin account gives you more buying power, but margin comes with interest charges and additional risk.

What if I want to trade options but Robinhood denied me?

You can request again after 30 days. In the meantime, build your trading history by buying and selling stocks, increase your account balance, and read about options strategies. A stronger application — higher net worth, longer trading history, and a clean account record — is more likely to be approved on the second request.

Can I downgrade my options level after I am approved?

Yes. You can downgrade to a lower options level anytime through Account Settings. Downgrades are usually instant. However, you cannot upgrade to a higher level for 30 days after your initial approval or after any previous upgrade request.

Do I pay a commission to trade options on Robinhood?

Robinhood does not charge a commission, but you pay the bid-ask spread — the difference between the buy and sell price. On popular options, the spread is small. On less popular options, the spread can be wide, which costs you money when you enter and exit the trade.