Can someone explain this to me?

Does this mean a cash secured put will continue to earn interest until the expiration date of an option order

Quote:

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We've updated our agreements and disclosures to reflect upcoming changes to the High-Yield Cash Program, which is available to Robinhood Gold subscribers.
Effective on or after March 9, 2026, the High-Yield Cash Program will also pay interest on eligible options cash collateral (only applicable if you have enabled options trading). The same interest rate will be paid on Cash Sweep Program, Brokerage-Held Cash Program and options cash collateral balances.

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They should. Honestly it is kind of shady that they weren't already, it is cash in your account it should be making interest.

EFR said:

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They should. Honestly it is kind of shady that they weren't already, it is cash in your account it should be making interest.

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It's not "shady" at all, but it's certainly NOT in the customer's best interest. It is clearly stated in the brokerage agreement you sign when setting up accounts (if you read them, that is). It is also one of the larger generators of profit for brokerage companies, and they argue that this helps offset some of the other services they provide for "free", such as zero commission trades, trading platforms, etc.

The fact is, Robinhood moving this direction is good news for brokerage consumers, and I can only hope this will FINALLY convince Schwab to follow suit (Fidelity and most others already offer this feature). It's really my only remaining gripe with Schwab, as they don't offer cash sweeps or automatically provide money market interest on cash within a brokerage account (since 2017), except for very large or institutional clients. I have to periodically move money into a money market fund, and it precludes me from taking quick action on a trade that exceeds my zero-interest earning cash position in my brokerage accounts.