Are you staring at your phone screen, frantically tapping that “Sell” button for your options contract on Robinhood, only to have nothing happen? You’re not alone. I’ve been there too—watching potential profits slip away while desperately trying to figure out what’s gone wrong. It’s incredibly frustrating when you can’t sell your options on Robinhood, especially when market conditions are changing rapidly.
In this comprehensive guide we’ll explore the common reasons why you might be unable to sell your options on Robinhood and how to fix these issues. As someone who’s personally experienced these headaches, I’ll share both technical explanations and practical solutions.
Common Reasons Why You Can’t Sell Your Options on Robinhood
1. Lack of Market Liquidity
One of the most common reasons why you can’t sell your options contract is simply that nobody wants to buy it at your asking price. Unlike stocks that typically have high trading volumes, options contracts—especially those that are far out-of-the-money or have unusual strike prices—might have very little liquidity.
What’s happening behind the scenes:
- Low trading volume for your specific contract
- Wide bid-ask spreads indicating thin market
- No buyers willing to match your sell price
How to fix it
- Try lowering your limit price closer to the bid price
- Consider using a limit order instead of a market order
- Check the options chain to see the current bid-ask spread
2. Trading Hours Restrictions
Unlike stocks which trade from 9:30 AM to 4:00 PM Eastern Time, options have slightly different trading hours. Options can only be traded during regular market hours, which means no extended-hours trading.
Common scenarios
- Trying to sell before market open (9:30 AM ET)
- Attempting to sell after market close (4:00 PM ET)
- Trading during market holidays when exchanges are closed
Solution:
Make sure you’re placing your order during regular market hours between 9:30 AM and 4:00 PM Eastern Time, Monday through Friday (excluding market holidays).
3. Pending Orders Blocking New Actions
Sometimes the issue isn’t that you can’t sell—it’s that you already have a pending order to sell the same contract.
What to check:
- Look for existing pending orders in your account
- Cancel any existing sell orders for the same contract
- Then try placing your new sell order
4. Technical Issues with Robinhood App
Let’s be honest, sometimes it’s just Robinhood being Robinhood. The platform occasionally experiences technical difficulties that prevent orders from going through.
Troubleshooting steps:
- Force close and restart the app
- Check if Robinhood is reporting any outages
- Try using the web version instead of the mobile app
- Make sure your app is updated to the latest version
5. Options Expiration Date Approaching
If your option is very close to expiration (same day or next day), you might have trouble selling it on Robinhood.
Why this happens:
- Robinhood may restrict trading on options on their expiration day
- Extremely low liquidity for options about to expire worthless
- Automatic exercise procedures beginning to take effect
What you can do:
- Try to sell options before their expiration date
- Consider exercising the option if it’s in-the-money
- Be aware of Robinhood’s options expiration procedures
6. Account Restrictions or Pattern Day Trading Rules
Your ability to trade options might be restricted due to account limitations or regulation.
Potential restrictions:
- Pattern Day Trading (PDT) rules if your account has less than $25,000
- Account being flagged for suspicious activity
- Temporary trading restrictions placed by Robinhood
How to check:
Review any account messages or notifications from Robinhood about restrictions on your account.
Understanding Options Basics on Robinhood
Before diving deeper into troubleshooting, let’s revisit some fundamentals about how options work on Robinhood. This context will help you better understand why selling issues might occur.
Options Trading Levels
Robinhood offers different levels of options trading based on your experience and other factors:
Level 2 approval gives you access to:
- Buying long calls and puts
- Selling covered calls
- Selling cash-secured puts
Level 3 approval adds more advanced strategies:
- Long straddles and strangles
- Call debit and credit spreads
- Condors and butterflies
If you’re trying to execute a strategy that requires a higher level than what you’re approved for, you won’t be able to place the trade.
Understanding Options Terminology
When selling options on Robinhood, it’s crucial to understand these distinctions:
Selling to close: This is when you’re selling an options contract you already own to exit the position. This is likely what you’re trying to do if you purchased a call or put option previously.
Selling to open: This is when you’re initiating a new position by selling an option to collect the premium. This makes you the option writer/seller rather than the buyer.
If you’re trying to “sell to close” but accidentally selecting “sell to open,” Robinhood may block the trade because it could create a naked position that you don’t have approval for.
Advanced Troubleshooting for Options Selling Issues
Check for Assignment Risk
If you’re trying to sell a deep in-the-money option very close to expiration, be aware that there’s a risk of early assignment. Sometimes Robinhood may restrict trading on these options to protect against assignment issues.
Verify Sufficient Buying Power
Even though you’re selling an option you own, sometimes there can be collateral requirements or temporary holds on funds. Make sure your account has sufficient buying power to execute the trade.
Inspect Contract Details
Double-check that you’re looking at the correct:
- Expiration date
- Strike price
- Call vs. put designation
- Underlying asset
I once spent 15 minutes trying to sell an option only to realize I was looking at the wrong expiration week! These details matter.
Practical Steps to Take When You Can’t Sell Options
Here’s my step-by-step approach when I can’t sell an options contract on Robinhood:
- Check market hours – Confirm the market is open
- Verify there’s a market – Look at the bid-ask spread in the options chain
- Try a limit order near the bid price – Start closer to what buyers are willing to pay
- Restart the app – Technical glitches happen more than Robinhood admits
- Contact Robinhood support – If all else fails, reach out for help
Understanding the Risks of Options Trading
When you can’t sell an options position, it highlights one of the fundamental risks of options trading: liquidity risk. Unlike stocks for major companies that almost always have buyers, options contracts can sometimes have very few interested parties, especially for:
- Far out-of-the-money contracts
- Contracts on low-volume stocks
- Options with unusual strike prices
- Contracts very near expiration
This is why Robinhood warns that “options trading entails significant risk and is not appropriate for all customers.” The platform even notes that certain strategies carry “the potential for losses that may exceed the original investment amount.”
Preventing Future Problems with Selling Options
To avoid getting stuck in positions you can’t exit, consider these preventative measures:
- Trade liquid options – Focus on options for major stocks with high trading volume
- Check the open interest – Higher numbers indicate more active trading
- Be cautious with weekly options – They lose value quickly and liquidity can dry up
- Have an exit plan – Decide when to sell before you buy
- Avoid holding through expiration – Sell or exercise before the final trading day
Final Thoughts
Not being able to sell your options on Robinhood can be stressful, especially if market movements are working against your position. Remember that options trading involves substantial risk, and liquidity issues are part of that risk profile.
If you find yourself frequently unable to exit positions, you might want to:
- Stick to more liquid options contracts
- Consider using a different broker for advanced options strategies
- Develop a deeper understanding of options mechanics
By recognizing the common causes of selling problems and knowing how to troubleshoot them, you’ll be better prepared to handle these situations when they arise. And trust me, if you trade options regularly enough, they will arise!
Have you ever been stuck unable to sell an options contract? What solutions worked for you? I’d love to hear about your experiences in the comments below!
How To EXIT AN OPTION Trade Before Expiration On Robinhood
FAQ
Why won’t my option sell?
Check the bid in your option and see what the open interest is. If it’s zero your option won’t execute. You can’t sell an option with no open interest on the bid even if there is open interest on the ask.
How to get approved to sell options on Robinhood?
It’s simple to get approved, go into your profile, max out your experience, income, etc – Everything, then go into settings, and click Enable options.
How to unlock options on Robinhood?
How do I close options on Robinhood?