---
title: Options Trading
group: Trading
subtitle: Options trading is available at Light Horse but requires prior approval.
description: How options trading works at Light Horse Securities — approval requirements, contract basics, risks, and applicable regulatory fees.
---

## 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](https://www.theocc.com/Company-Information/Documents-and-Archives/Options-Disclosure-Document) 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](https://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.