Robinhood’s options trading business is exploding, according to Chris O’Neil, a product manager at the California broker.
Now the firm, which has seen $2 billion in options trading volumes since launch, is upping the ante with the roll-out of multi-leg options.
The move shows the company is seriously going after the business of more experienced traders, says Devin Ryan, an analyst at JMP Securities.
When most people think about Robinhood, free stock trading and its red-hot crypto feature typically come to mind.
But Robinhood also has a lesser-known options trading business, which it launched in late 2017, and is growing fast.
The firm has clocked-in over $2 billion in options volumes, making it one of the largest platforms offering exposure to the market, said Chris O’Neil, a product manager at Robinhood responsible for the firm’s options business.
Robinhood is now rolling out multi-leg options, which allow traders to engage in more advanced strategies tied to options.
“We ended up doing it before we thought we would because it was the biggest request from our options users, which put a priority to roll it out,” O’Neil told Business Insider.
Options don’t get the same attention on Main Street as stock trading, but they make up a huge market on Wall Street. An option allows an investor to buy or sell an asset or security — say a stock or a currency — at a certain price at a specified date in the future. Options allow investors to bet on the price of an asset in the future, or to hedge their bets elsewhere against an unexpected price swing. Competitors, such as TDAmeritrade and Fidelity, charge customers more than $4 per contract.
The roll-out of multi-leg options is the latest in Robinhood’s evolution as a company. It made a splash when it said …read more
Source:: Business Insider