Robinhood Markets HOOD told users on Tuesday that the brokerage will add options contracts that expire on Tuesdays and Thursdays. The new daily contracts will be available for Invesco QQQ QQQ and SPDR S&P 500 ETF TO SPY.
Prior to Tuesday, users could only trade options contracts expiring on a Monday, Wednesday or Friday. Starting Tuesday, users will now be able to choose any day of the week for QQQ or SPY option expiration dates.
Most stocks have option expiration dates every Friday. Due to high trading volume and demand for QQQ and SPY options contracts, market makers have expanded their offerings to give traders more flexibility. Robinhood is a partner of Cboe Global Markets Inc. CBOE for its option offers.
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What are option contracts? Options contracts are a type of derivative contract that allows traders to buy or sell an underlying security at a predetermined price. For example, you could buy a “call” contract that gives you the right to buy a stock at a certain price.
Traders often use options to increase their leverage. Options have become extremely popular over the past few years because traders can make more money faster than with common stocks, but options can often be inherently more volatile and risky than buying common stocks.
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