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 Robinhood for about six months from around December 2017. I decided after using it for a week or two that this app made it the easiest to trade stocks. A few months later, I got the choice to do options trading.
After buying a few stocks of Helios and Matheson (HMNY) I decided to buy an options contract of $1 a share in August. The reason I did this was because after researching the company and seeing the future options they decide to do, I believed that their stock price can easily go above $1. The only downside of using robinhood, is you need to "buy" 100 shares at once. If you were to do options trade with bigger stocks it can get quite costly.

In conclusion, I believe there is a great future for Robinhood. I also believe we will start seeing more and more people join in and practice in the stock market because of it.

If you want to join Robinhood and get a free stock in the process follow this link: https://share.robinhood.com/anthonb1493.

Disclaimer: I am not a financial or stock advisor. Any opinons about stocks, options or otherwise are mine and not intended to be financial advice or predictions. Consult a certified financial advisor if you plan to invest in the stock market.  


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