Questions tagged [robinhood]

For questions involving or relating to the use of Robinhood, the service that allows people to invest in publically traded companies and exchange-traded funds through the use of the mobile app of the same name.

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How does Robinhood’s cash sweep achieve 4% interest?

As of February 2023, Robinhood’s Brokerage Sweep Program guarantees its users 4.15% APY (for those who pay $5 a month for Robinhood Gold). Robinhood is sweeping the cash to banks. Do those banks offer ...
asb1230's user avatar
  • 253
1 vote
2 answers
4k views

How is it possible to buy call options with a strike price below current market price?

I'm a newbie with all of this. I've been reading on call options and from my understanding, you're paying some "premium" to buy an "option" to buy the stock at a certain fixed ...
streampaw's user avatar
2 votes
0 answers
103 views

What happens when I buy a stock?

I am curious about what happens under the hood when I buy one share of APPL at market price on robinhood. What happens if there is someone else on robinhood is selling one share of APPL at the same ...
etudiant's user avatar
2 votes
1 answer
722 views

Moving from Robinhood to TD Ameritrade: Can I use specific-lot-matching method?

I've been using both TD Ameritrade and Robinhood for a while. I just learned that on TD Ameritrade, you can use the specific-lot-matching method when you sell your shares. It's in My Account -> ...
CodeOwl's user avatar
  • 313
9 votes
1 answer
2k views

Robinhood, daily buying and selling, and cryptocurrencies... What tax concepts to expect?

Robinhood has plenty of docs explaining the tax concepts with trading, and this is not particularly mysterious. But what I am wondering is what sort of documents to expect them to provide come tax ...
Kai Qing's user avatar
  • 1,217
2 votes
2 answers
588 views

Failed Iron Condor while market price was under Short Call Spread

Symbol is: SPY. My short call spread was at $412, and market price was $410.50... I was 100% in returns until RH closed my call spread for a negative $5,688... I do not understand what I did wrong ...
thevoipman's user avatar
1 vote
0 answers
38 views

Where Option Credit gets added

I have a question, when you sell options (call or puts) you get credit upfront, but my question is where you can see these credit amounts? In "Stocks & Options" or in "Brokerage ...
Noob_NoVoice's user avatar
2 votes
2 answers
3k views

Not going to receive any tax form from robinhood - where to report the dividends earnings

I got the following email from Robinhood: Since my dividends were less than $10 (around $5), I am wondering where exactly I should report it while filing taxes as I won't be getting 1099-DIV this ...
Tan's user avatar
  • 267
2 votes
1 answer
80 views

Does short selling increase the number of shares of a stock?

Can this happen? If I own 100 shares in a company, held at a brokerage firm, and someone borrows them to sell, and if I am in fact the buyer, my account would show I own 200 shares. Since 100 of ...
Robin Thug's user avatar
1 vote
2 answers
1k views

How can I verify ownership of shares bought using an application?

I am currently 24 and looking to start purchasing share for the long term investment of retirement saving. I am a little bit nervous about the entire process and I would hope somebody could explain a ...
memelord23's user avatar
1 vote
2 answers
3k views

How much are fees on ETFs on Robinhood? Where are they shown?

Trading stocks on Robinhood is free. That's nice. But Robinhood also provides various funds and ETFs. They usually have an expense ratio which can range from 0.04% for a Vanguard ETF to 1% range for ...
divB's user avatar
  • 375
1 vote
1 answer
317 views

Does FIFO still trigger day trading? (using Robinhood)

I am using Robinhood and wondering how day trading is triggered and how first-in-first-out (FIFO) selling order works. I bought GME stock yesterday and bought GME stock today. If I sell 1 GME share ...
user105949's user avatar
2 votes
1 answer
418 views

Robinhood - should I expect to receive a tax document?

I started investing last year with a small amount so my dividend earnings for 2020 is only about $5. Robinhood says that my tax document should be available on or before Feb 16. Should I expect to ...
Tan's user avatar
  • 267
0 votes
1 answer
49 views

What happens to the difference between the limit order and executed order

Say I place a limit order at 100$ for IBM using Robinhood. While waiting for it to be executed, the price goes down, and the order is executed at cheaper than my limit, say 99$. My question is, what ...
blockByblock's user avatar
-1 votes
1 answer
762 views

Robinhood Stock “Cash Settlement”

I bought a (call) option on AMAG stock and Robinhood send me a message like this: What should I do? Are they going to pay me? The expiration date is 11/20 and I don’t know what should I do. Please ...
Sean Taylor's user avatar
0 votes
1 answer
156 views

When to pay taxes on sold stocks or options?

I am a newbie to stock and options trading. I trade on Robinhood (I guess the tax system should be same regardless the platform). It would be great to have answers on these questions. Thanks in ...
Osman Mamun's user avatar
0 votes
1 answer
509 views

Robinhood sell option not executing

I bought a few CCL calls and I am looking to sell. I placed a "limit sell" at consistently 10-20% under market price (there are large fluctuations), but it is not executing (1 day has passed)...
Jason Cheng's user avatar
-1 votes
2 answers
200 views

Options Help - Partial allocation of shares?

I'm still learning options trading and got into it recently on Robinhood - but I have a few quick questions. I have 2 contracts for ACB $12.5 Put 9/4. When I go through the steps to exercise it, I ...
Bee's user avatar
  • 1
2 votes
0 answers
2k views

Robinhood and W8BEN for Non-US residents

I have an account with Robinhood which I opened when I was in the US and never traded on the platform. I did some trades this year. I am now an Indian resident for the entire year and forgot to close ...
prasad's user avatar
  • 21
0 votes
1 answer
178 views

Robinhood Tax Documents

I have to file a 8949 document with my tax return and was wondering if that meant that I just had to mail my Robinhood 1099B form that they generate for me?
Gerold Astor's user avatar
1 vote
1 answer
37k views

What is the difference between buying stock in Shares VS Dollars?

I'm a newbie in the stock market, well in "RH" & "WB". I just received notice I can buy "some" Stock in $ dollars also, my question is: What is the difference in ...
Liza Figueroa's user avatar
3 votes
2 answers
504 views

If I am buying a stock why don't just I buy an in the money option?

I'm a 15 year stock market investor here who is very new to option trading (two weeks). I have a full understanding of how options work (complicated needless to say) and I have realized their ...
lgalico's user avatar
  • 59
4 votes
3 answers
267 views

FDIC vs SIPC on Robinhood

I'm really confused how Robinhood insures cash. I am NOT talking about the cash management bank sweep program, where the money is insured by the banks....that is quite trivial. I'm talking about ...
user98499's user avatar
0 votes
0 answers
107 views

Are there any limitation on crypto day trading?

I'm trading crypto on Robinhood. My account is over $30,000 (for the last month). But today I got this weird message: Because you are marked as a pattern day trader, your account will be ...
user97952's user avatar
0 votes
2 answers
190 views

Is Robinhood good enough for successfully day-trading relatively large positions ($20k~30k)

After I deposited all my money in robinhood to start day trading options, I was told that robinhood execution speed might not be good enough for successful day trading. My plan was to profit off the ...
Amanda's user avatar
  • 11
3 votes
1 answer
370 views

Why is Robinhood a second rate stock broker? [closed]

I have heard that Robinhood is not the best fee free stock broker. The issues I am aware of are that you can't buy fractional shares of stocks, and you can't day trade efficiently. What other ...
Al G Johnston's user avatar
0 votes
2 answers
149 views

Summary of a single stock on Robinhood

Is there a way to see the total month end or up to now summary of trades for a single stock I have performed on Robinhood? To not see individual trades, but sum of all trades for a single stock. ...
bissi's user avatar
  • 21
2 votes
2 answers
11k views

How do naked options work on Robinhood?

I just answered a few questions on Robinhood and suddenly I am able to trade options without holding any stock of the underlying security. I assume there are a lot of people that have the same ability....
jacob's user avatar
  • 133
0 votes
1 answer
1k views

When is the last time/date I can sell an option contract?

I am long on a few put options that expire this Friday. They are currently in the money (ie the stock price is below my strike price... *knock on wood**). I am utilizing Robinhood as the brokerage ...
Runeaway3's user avatar
  • 2,898
0 votes
1 answer
628 views

Significant (75%) End of Day jump in option price

I am fairly new to option trading so am having a hard time making sense of this... I had a $10 put option for VIVO with 02/21/20 expiration. As viewed in the Robinhood app, the option jumped from $1....
SolStack's user avatar
  • 103
0 votes
1 answer
194 views

Sell the long on a debit spread to move it closer to the short?

I’ve been thinking about opening a wide bullish debit spread on SPY with a two month time to expiry. I’m currently looking at the March 20th calls and am thinking of selling the $425 call while ...
Hazel へいぜる's user avatar
0 votes
1 answer
521 views

Is a credit larger than the spread width bad in a credit spread?

I’ve been pondering this question since looking a put options for MCD today where I found two options for a credit spread that resulted in a credit $0.01 higher than the width of the spread. I was ...
Hazel へいぜる's user avatar
0 votes
2 answers
198 views

Why can’t I seem to purchase this option?

I’m using Robinhood, and I’m new to options trading. A co-worker is teaching me about options trading, and recommended I start with cheaper long term options to learn with since I’ll lose less money ...
Hazel へいぜる's user avatar
1 vote
1 answer
4k views

Does this scenario count as one day trade, or two?

I am currently investing with the Robinhood app and have been doing fairly well with day trades two to three days a week. However, I find myself in a new scenario this morning where I don't know if my ...
Hazel へいぜる's user avatar
0 votes
1 answer
691 views

Why is the bid on my put credit spread zero when each leg has a positive bid?

I am trying to setup a put credit spread on robinhood and my bid keeps showing zero. I’m not sure how or why this happens. As I am new to trading options any help would be appreciated. the stock(bb)...
optionstrader's user avatar
0 votes
2 answers
201 views

Advice for an 18 year old about Investing? [duplicate]

I'm currently 18, I already have investments in a variety of conservative mutual funds through the Stash app, however I want to get into actually investing for extra income. I currently have a steady ...
Stressed4Success's user avatar
1 vote
2 answers
1k views

Will I pay taxes twice if I move from eTrade to another platform?

I have vested shares at the company I work at. Somewhere around $40k worth, in an eTrade account. I've paid due taxes through share withholding, but have not sold yet because I believe in the company ...
Felipe's user avatar
  • 115
0 votes
1 answer
166 views

Ally Bank zero commission vs Robinhood no commission fees?

Ally Bank claims to have zero-commission transaction fees accounts for trading, Robinhood does the same. Do they both actually not charge any fees/commissions? My understanding was that the free fees ...
tsar2512's user avatar
  • 101
1 vote
1 answer
200 views

Size limit on option buying and selling

While using Robinhood I have found that can buy/sell a maximum of 200 call options at a time. Is this a general rule for all trading clients at other brokers such as Ameritrade, Merrill Lynch, etc.?
changed's user avatar
  • 113
0 votes
2 answers
2k views

Selling options below bid on Robinhood

If you sell an option for cheaper than what is someone willing to pay, does Robinhood sell it for the best price or for the price you chose to sell it? I'm trying to figure out if I can do stop loss ...
dwkd's user avatar
  • 107
2 votes
1 answer
645 views

Insider Trading as Low Level Employee as Shown in Robinhood Commercial

A recent commercial for the commission-free trading app Robinhood shows a store's stockboy noticing features about the company, such as if shelves were empty/full of product, and then trading on that ...
jdude97's user avatar
  • 123
2 votes
2 answers
2k views

Why won't my pending dividends show up in Robinhood account?

BP is supposed to pay dividends tomorrow but when in Robinhood whenever I navigate to History -> Filter -> Dividends it says: When you receive your first dividend, it will show up here. Isn't there ...
newsky's user avatar
  • 21
1 vote
2 answers
274 views

Option trading for dummies

If I buy a $200 call option for $22 ($0.22) that expires in 3 weeks, with a current share price of $140, can I sell the option two weeks from now if the share price has reached $180? I'm asking ...
Raj's user avatar
  • 693
3 votes
3 answers
2k views

As a short term trader, do I personally have to keep track of every wash sale for tax purposes? [duplicate]

New to trading, trying to understand how wash sales apply to short term trades that occur in the middle of the tax year. Consider the following scenario: Day 1: Buy 100 ABC for $10 Day 2: Sell 100 ...
jimmyd's user avatar
  • 45
2 votes
1 answer
4k views

Robinhood does not provide all information necessary to fill out 1099

This year I invested money in stocks for the first time. I didn't sell anything though I received $0.26 of dividends. Robinhood sent me a consolidated 1099 which contains information about the ...
Luca Thiede's user avatar
3 votes
2 answers
1k views

Discrepancy in P/E ratio of stocks in Robinhood app?

The current price of the Amazon stock is $1673. The latest EPS ratio was $6.04 for Q4 2018. So, the P/E ratio should be $1673/$6.04 ~ 279. But the robinhood app says the P/E ratio of Amazon is 83. ...
kchanuec's user avatar
1 vote
1 answer
6k views

"Break even" price on call options is lower than current stock price?

I am using the Robinhood app and see call options with breakeven prices below the current stock price. Is there a reason why you wouldn't just buy this option and then sell it off immediately ...
Richard's user avatar
  • 11
2 votes
3 answers
5k views

What does Robinhood's account graph represent?

I'm confused at what the Y-axis of Robinhood's account graph represents. It is not labeled. It's showing $3,000 when hovering over a date well before I ever created an account on robinhood. I would ...
JoJo's user avatar
  • 652
11 votes
3 answers
1k views

Is my cash safe with Robinhood banking?

Just today Robinhood released its own banking with 3% annual yield. The money will be SIPC insured. While I understand that SIPC wont cover my investments losing their value, however the cash in the ...
Nirvedh Meshram's user avatar
1 vote
1 answer
245 views

Is Firstrade a legitimately free broker?

I'm curious about Firstrade. I know RobinHood is also fee-free, but some users claim that they make money but frontrunning, which can be costly in the long run. Curious to know if Firstrade is ...
JDM's user avatar
  • 81