Robinhood Advanced Features Guide: Options, Strategies, and Prediction Markets
đ¯ Robinhood's Advanced Investment Features
Robinhood started as a beginner-friendly app, but now offers various features for advanced investors. In this article, we'll explore options trading, Robinhood Strategies, and the explosively growing prediction markets.
⥠Options Trading
What Are Options?
Options are financial contracts that give you the right to buy or sell a specific asset at a predetermined price. The important thing is that it's a 'right,' not an 'obligation.'
â ī¸ Important Warning
Options trading is very risky. It's not uncommon to lose 100% of your invested money. Starting without sufficient education is not recommended.
Two Types of Options
| Type | Direction | Description |
|---|---|---|
| Call Options | Bullish bet | When you expect the price to rise |
| Put Options | Bearish bet | When you expect the price to fall |
Leverage Effect
Each options contract controls 100 shares. This is leverage in action.
For example:
- Nvidia stock: Up 1.3%
- The option: Up 25%
Same stock movement, but options react much more dramatically. This is both the appeal and the risk of options.
Where to Trade Options
- Click the Trade button
- Select 'Trade Options'
- Access the Option Strategy Builder
- Choose expiration date, call/put, buy/sell
Key Concepts
- Expiration Date: The last day the option is valid
- Strike Price: The price at which you can exercise the option
- In the Money: Currently profitable
- Out of the Money: Currently at a loss
đ¤ Robinhood Strategies
One of the newly launched features this year is Robinhood Strategies.
What Is It?
Robinhood Strategies are expert-managed portfolios. This service is designed for those who find the DIY approach of picking and managing stocks themselves overwhelming.
Traditional Robinhood vs Strategies
| Item | Traditional Robinhood | Strategies |
|---|---|---|
| Management Style | Self-directed | Expert-managed |
| Best For | Active investors | Passive investors |
| Fees | Free | 0.25% annually |
Fee Structure
- Asset Management Fee: 0.25% annually
- Fund Expenses: Additional expense ratios from individual funds
Compared to other asset management services, this is quite reasonable.
How to Access
- Go to the top of the home screen
- Select the 'Strategies' tab
- Choose a portfolio matching your investment goals
đŽ Prediction Markets
The fastest-growing category on Robinhood is prediction markets.
What Are Prediction Markets?
Financial contracts that let you bet on real-world events:
- Sports Events
- Politics
- Economic Indicators
- Various Other Events
Current Scale
You can bet on over 1,831 different events!
How to Access
- Scroll to the bottom of the home screen
- Click 'Prediction Markets'
- Select your event of interest
Prediction Market Categories
- Featured: Most popular events
- New: Newly added bets
- Sports: Sports game outcomes
- Politics: Political events
- Economics: Economic indicators
How It Works
For example, a sports event:
- Dallas Cowboys vs Washington Commanders
- Dallas: 72% odds
- Washington: 22% odds
These odds keep changing as people place bets. Just like stock prices.
Political Event Example
'When will Trump announce his new Fed chair?'
- Before February 1: 92 cents
- Before January 15: 69 cents
- Before 2026: 6 cents
Higher prices indicate the market predicts a higher probability of that outcome.
How to Bet
- Select your desired event
- Click Continue
- Review disclosures
- Enter your bet amount
- Confirm
đ Advanced Order Types
Robinhood supports various order types beyond basic market orders.
Order Types
- Market Order: Executes immediately at current price
- Limit Order: Executes when reaching your specified price
- Stop Order: Sells when hitting a specific price
- Conditional Order: Set complex conditions
How to Access
Click the top menu on the buy/sell screen to select different order types.
đĄ Cautions for Advanced Features
Options Trading
- Start only after sufficient education
- Only invest money you can afford to lose
- Always check expiration dates and strike prices
Prediction Markets
- Highly speculative in nature
- Clearly distinguish between gambling and investing
- Set a budget before starting
Strategies
- Understand the fee structure
- Best suited for long-term investing
- Can be combined with DIY approach
đ Robinhood's Evolution in 2026
Robinhood is evolving from a simple stock trading app to a comprehensive financial platform:
- â Commission-free stock/ETF trading
- â 45+ cryptocurrencies
- â Retirement accounts (1% matching)
- â Options & futures trading
- â Expert-managed portfolios
- â Prediction markets
Regardless of your investment experience, you can choose and utilize features that suit you.
đ Wrapping Up
Robinhood's advanced features offer more diverse investment opportunities, but with greater risk. Options trading in particular can lead to significant losses without proper education.
If you're just starting out, begin with basic stock and ETF investing, then gradually explore advanced features as you gain experience.
Investing is a marathon. Consistency is key.