Robinhood to Expand Options Contract Feature to More Traders

  • Options rolling allows users to extend buy-and-sell rights
  • Work on options tool discovered in hidden code inside beta app
Photographer: Andrew Harrer/Bloomberg
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Robinhood Markets Inc. is working to let more traders use a feature for its mobile app that rolls options contracts, a mechanism that allows traders to extend their options.

Options provide the right to buy or sell a stock at a specific price by a future date. They can be lucrative financial instruments for brokerages. At Robinhood, options activity brought in about 61% of the firm’s third-quarter trading revenue. Options rolling allows a trader to close out a position and simultaneously open a new one with another date and price.