Options Trading
Options trading is available at Light Horse but requires prior approval.
Approval Required
Options trading involves substantial risk and is not available by default. You must complete an options trading application and receive approval before placing options orders.
What Are Options?
An options contract gives the buyer the right (but not the obligation) to buy or sell 100 shares of an underlying stock at a specific strike price before a specific expiration date.
- Call option: right to buy shares at the strike price
- Put option: right to sell shares at the strike price
Risks of Options Trading
- Options can expire worthless, meaning you lose your entire premium
- Certain strategies (like selling uncovered calls) carry theoretically unlimited risk
- Options are time-sensitive — losses can accelerate as expiration approaches
- Implied volatility can significantly affect option pricing independent of the underlying stock price
Please read the Characteristics and Risks of Standardized Options (ODD) before trading options. A copy is available at OCC's website or by request from Light Horse.
Options Fees
Regulatory fees apply to options transactions:
- TAF (Trading Activity Fee): $0.00329 per contract
- OCC Clearing fee: $0.025 per contract
Frequently Asked Questions
How do I apply for options trading?
Apply through your account settings at portal.lighthorse.io. You'll be asked about your investment experience, risk tolerance, and financial situation.
Are there commissions on options trades?
No per-contract commissions. Regulatory fees (TAF and OCC) apply.