Robinhood Advanced Features Guide: Options, Strategies, and Prediction Markets

🎯 Robinhood's Advanced Investment Features

Robinhood started as a beginner-friendly app, but now offers various features for advanced investors. In this article, we'll explore options trading, Robinhood Strategies, and the explosively growing prediction markets.

⚡ Options Trading

What Are Options?

Options are financial contracts that give you the right to buy or sell a specific asset at a predetermined price. The important thing is that it's a 'right,' not an 'obligation.'

⚠️ Important Warning

Options trading is very risky. It's not uncommon to lose 100% of your invested money. Starting without sufficient education is not recommended.

Two Types of Options

Type	Direction	Description
Call Options	Bullish bet	When you expect the price to rise
Put Options	Bearish bet	When you expect the price to fall

Leverage Effect

Each options contract controls 100 shares. This is leverage in action.

For example:

Nvidia stock: Up 1.3%
The option: Up 25%

Same stock movement, but options react much more dramatically. This is both the appeal and the risk of options.

Where to Trade Options

Click the Trade button
Select 'Trade Options'
Access the Option Strategy Builder
Choose expiration date, call/put, buy/sell

Key Concepts

Expiration Date: The last day the option is valid
Strike Price: The price at which you can exercise the option
In the Money: Currently profitable
Out of the Money: Currently at a loss

🤖 Robinhood Strategies

One of the newly launched features this year is Robinhood Strategies.

What Is It?

Robinhood Strategies are expert-managed portfolios. This service is designed for those who find the DIY approach of picking and managing stocks themselves overwhelming.

Traditional Robinhood vs Strategies

Item	Traditional Robinhood	Strategies
Management Style	Self-directed	Expert-managed
Best For	Active investors	Passive investors
Fees	Free	0.25% annually

Fee Structure

Asset Management Fee: 0.25% annually
Fund Expenses: Additional expense ratios from individual funds

Compared to other asset management services, this is quite reasonable.

How to Access

Go to the top of the home screen
Select the 'Strategies' tab
Choose a portfolio matching your investment goals

🔮 Prediction Markets

The fastest-growing category on Robinhood is prediction markets.

What Are Prediction Markets?

Financial contracts that let you bet on real-world events:

Sports Events
Politics
Economic Indicators
Various Other Events

Current Scale

You can bet on over 1,831 different events!

How to Access

Scroll to the bottom of the home screen
Click 'Prediction Markets'
Select your event of interest

Prediction Market Categories

Featured: Most popular events
New: Newly added bets
Sports: Sports game outcomes
Politics: Political events
Economics: Economic indicators

How It Works

For example, a sports event:

Dallas Cowboys vs Washington Commanders
Dallas: 72% odds
Washington: 22% odds

These odds keep changing as people place bets. Just like stock prices.

Political Event Example

'When will Trump announce his new Fed chair?'

Before February 1: 92 cents
Before January 15: 69 cents
Before 2026: 6 cents

Higher prices indicate the market predicts a higher probability of that outcome.

How to Bet

Select your desired event
Click Continue
Review disclosures
Enter your bet amount
Confirm

📊 Advanced Order Types

Robinhood supports various order types beyond basic market orders.

Order Types

Market Order: Executes immediately at current price
Limit Order: Executes when reaching your specified price
Stop Order: Sells when hitting a specific price
Conditional Order: Set complex conditions

How to Access

Click the top menu on the buy/sell screen to select different order types.

💡 Cautions for Advanced Features

Options Trading

Start only after sufficient education
Only invest money you can afford to lose
Always check expiration dates and strike prices

Prediction Markets

Highly speculative in nature
Clearly distinguish between gambling and investing
Set a budget before starting

Strategies

Understand the fee structure
Best suited for long-term investing
Can be combined with DIY approach

🚀 Robinhood's Evolution in 2026

Robinhood is evolving from a simple stock trading app to a comprehensive financial platform:

✅ Commission-free stock/ETF trading
✅ 45+ cryptocurrencies
✅ Retirement accounts (1% matching)
✅ Options & futures trading
✅ Expert-managed portfolios
✅ Prediction markets

Regardless of your investment experience, you can choose and utilize features that suit you.

📌 Wrapping Up

Robinhood's advanced features offer more diverse investment opportunities, but with greater risk. Options trading in particular can lead to significant losses without proper education.

If you're just starting out, begin with basic stock and ETF investing, then gradually explore advanced features as you gain experience.

Investing is a marathon. Consistency is key.