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 I've been using Robin…