Want Free Option Trades? Check This Out…

By now you have probably heard of the trading platform Robinhood.

Robinhood has a disrupter in the stock game for a few years now by offering commission-free equity trading.

Yesterday it announced it would be offering free options trading to its more than 3 million users.

“In 2015, by focusing on technology and automation, we challenged the finance industry with the launch of commission-free equity trading, paving the way for millions of Americans to participate in their own financial system,” said Baiju Bhatt, Robinhood’s cofounder and co-CEO, in a press release on the news. “Today, we are doing it again, with commission-free options trading, rooted in the belief that sophisticated investment tools don’t need to be complex or reserved for the wealthy.”

Here are the highlights of this new offering.

It’s completely free – No commission and no per contract fee upon buying or selling options, as well as no exercise or assignment fees.”

There will be advanced options strategies – “Level 2 self-directed options strategies (buying calls and puts, selling covered calls and puts) as well as Level 3 self-directed options strategies such as fixed-risk spreads (credit spreads, iron condors), and other advanced trading strategies are available.”

Pricing Filters – Robinhood’s proprietary Pricing Filter streamlines the options tables, removing potentially misleading or superfluous information and hides options with little volume or liquidity where you may receive an unfair fill.”

The latest chapter in Robinhood’s evolution as a company comes after launching a new web platform last month.  Robinhood has also begun allowing users to transfer stocks from competing brokers.

Even though Robinhood was created with millennials in mind, it has begun to cater to a more mature trading audience.  I thought my particular audience would be interested in hearing about free trades.

Check out Robinhood’s new options offering here.  It seems like it’s worth a look.

— The Option Specialist

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About the Author: The Option Specialist