How to Get Options Approved on Robinhood
Why Robinhood for Beginners?
Before you can trade options on Robinhood, you need to apply for options approval. The process takes a few minutes. Here's exactly what they ask and how to answer.
Robinhood is our recommended starting platform for new options traders because:
- Commission-free options trading (no per-contract fees)
- Clean, intuitive mobile interface
- Easy-to-read options chain
- Fast approval process
- Instant buying power for approved accounts
As you advance, you might migrate to platforms like Tastytrade (built specifically for options, lower fees on high-volume trading) or Webull (more advanced charting). But for learning the mechanics and placing your first trades, Robinhood is hard to beat.
The Approval Questions
Robinhood will ask you several questions to determine your options approval level. Level 2 is what you need — it allows you to buy calls and puts outright.
Here's what they ask and what to select:
| Question | What to Select | Why |
|---|---|---|
| Investment experience | "Some" or "Extensive" | Be honest — 1–2 years of investing counts |
| Investment objective | "Growth" or "Speculation" | Options are growth/speculation tools |
| Risk tolerance | "Aggressive" | Required for Level 2 approval |
| Annual income | Accurate figure | Higher income = smoother approval |
| Net worth | Accurate figure | They want to confirm you can absorb losses |
| Options knowledge | Study the quiz answers | Level 2 = buying calls and puts |
What If You're Denied?
If Robinhood denies your first application, you can reapply after 30 days. In the meantime:
- Practice paper trading
- Increase your account balance
- Update your profile with more accurate financial information
Most denials are from selecting "Preservation" as your investment objective or "Conservative" as risk tolerance. Adjust accordingly.
Level 1 vs Level 2
- Level 1: Covered calls only (you already own the shares). Not what we want.
- Level 2: Buy calls and puts. This is what TarsierAlpha strategies require.
- Level 3: Spreads and more complex strategies. Not needed for our approach.
After Approval
Once approved for Level 2, you can immediately start buying call and put options.
We recommend:
- Start with 1 contract maximum on your first 3–5 trades
- Follow the TarsierAlpha watchlist to see setups that meet our scoring criteria
- Study the Greeks before placing your first real trade
Next Steps
- What Is Options Trading? — the complete beginner guide
- How to Read an Options Chain on Robinhood — step-by-step chain reading
- Understanding the Options Greeks — Delta, Theta, IV, and Gamma explained