Showing posts from May, 2018

I just made my first options trade on Robinhood

I just made my first Options Trade on Robinhood. What is Robinhood? Robinhood has been in the press lately, and even closed another round of funding  making the founders billionaires . What it essentially does is let the average Joe/Jane off the street to buy and sell stocks with no barrier except a smartphone app. This has let millions of people participate in the stock market when it wasn't possible before.  What is Options Trading? In a nutshell Options allow you to buy or sell a stock at a certain price, but is not required. Let's say I thought apple(AAPL) was going to be above $200 in 1 year, I would then put a Buy (Call) option in for AAPL at 1 year for $200 a share. A year after putting the option in, AAPL is at $215 a share, but because I bought an option at $200 i profited $15.  Of course there is more to it than that, but I won't get into it. If you want to learn more about options trading I suggest starting with this article . The Experience