Closing an option on Robinhood requires specific steps to complete the process. Opening an option requires selecting a strategy, selecting the underlying security, choosing strike prices and specifying expiration dates. To successfully close an option, users of the trading app need to follow these steps:
Open the account page within the Robinhood app's dashboard. Go to the tab labelled 'Positions.' Select the position of the option to be closed. This page provides helpful information such as stock position, price per share, action and cost basis. Tap 'Option Detail' to view the exact option to be closed. A series of useful information about the position is displayed. Tap 'Sell to Close.' Input the number of contracts and select a limit price as applicable. Select 'Review and Confirm.' Review the terms of the order and if satisfied, tap 'Confirm' to complete the process.
Options offer investors a way to enter the stock market and get in at the ground level of trading. Closing options on Robinhood is a straightforward process, allowing users to manage their option positions with ease. Careful consideration should be given when closing an option in order to maximize returns and minimize losses.
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