Top Prop Firms for Stock Options Trading: Your Complete Guide

Prop Firms That Support Stock Options Trading

If you've been hunting for proprietary trading firms (prop firms) that support stock options trading, you may have discovered a frustrating truth: the list of options-friendly firms is significantly smaller than that for futures or forex trading. Equity options come with unique exchange, clearing, data, and risk controls that many “funded trader” programs can't or won't accommodate. Fortunately, there are credible pathways to trade options with firm capital, you just need to know where to look, what licenses might be needed, and how the associated costs and restrictions operate.

In recent years, I've evaluated and spoken with multiple firms and traded options both independently and within professional frameworks. This guide distills what matters, cuts through marketing fluff, and highlights where to locate real opportunities in the options trading space.

Introduction

A proprietary trading firm invests its own capital by employing or backing traders who buy and sell financial instruments. In exchange, they share profits with their traders. For options traders, prop firms can provide larger buying power, professional-grade platforms, and potentially better execution and commissions than retail trading environments.

However, the complexity of options due to factors like licensing, OPRA data, assignment risk, and margin modeling creates a prop trading landscape that differs significantly from equities or futures. To trade options professionally, it’s essential to understand how prop firms are structured and which ones truly support options strategies. For a detailed breakdown, check out our complete guide to prop firms for stock options trading.

This comprehensive guide covers essential topics such as different firm types, supported trading strategies, fees, licensing, risk management, and real-world examples equipping you with the knowledge needed to determine whether joining a prop firm fits your options trading goals.

Understanding Prop Firms

What is a Prop Firm?

A proprietary trading firm deploys its own capital through traders who may either be employees or independent contractors. The firm's goal is to facilitate profitable trading while maintaining robust risk controls and infrastructure, such as capital, platforms, data, and coaching. Unlike traditional brokerages, prop firms do not handle retail customer accounts or provide investment advice.

Compared to a retail brokerage account, prop trading offers several advantages:

• Lower per-contract commissions at scale.

• Access to portfolio margin or more favorable house margin.

• Direct market access with superior routing for complex orders.

• Professional market data and trading tools.

The trade-offs can include licensing requirements, desk/data fees, stricter risk limits, and a profit split. See our essential advice for selecting a stock trading prop firm to weigh these pros and cons effectively.

Types of Prop Firms

You'll encounter three broad categories of prop firms:

1. Licensed Broker-Dealer Desks (US)

   • These are FINRA/SIPC member firms that register traders (often requiring Series 57) and clear trades through an OCC/clearing broker. They represent the most credible option for US-listed equity options and typically support multi-leg options strategies and professional-grade routing.

   • Learn more about FINRA member firms here.
     
     

2. Funded Trader Programs (Challenge Firms)

   • Commonly seen in futures and forex, legitimate funded trader programs for US equity options are nearly non-existent due to the complexities associated with exchange, clearing, and OPRA data. Be cautious if you encounter “challenge” models for US stock options. If you are exploring this route, review our list of top prop firms for options trading in 2026 to find verified programs.
     
     

3. Institutional Market-Making/Quant Firms

   • Firms such as SIG, Optiver, IMC, Jane Street, and Citadel Securities may trade options and hire traders as employees. Those interested in options trading can apply to these firms to receive training and work on their trading stacks.

The restrictions, fees, and support vary widely between these types. For most independent options traders, a US broker-dealer prop seat or a selective “hybrid” program designed for options trading (e.g., Maverick Trading) are the most realistic options.

Key Considerations for Trading Options at Prop Firms

Trading Strategies Supported

Not every prop desk accommodates the same options trading strategy. Before joining, it's crucial to inquire specifically about:

• Buying vs. Selling Options

  • Some desks may restrict trading to long calls or puts for capping risk, while more serious desks allow selling premium with house limits on risk.
    
    

• Multi-Leg Strategies

  • Spreads, iron condors, butterflies, calendars, diagonals, and ratio spreads may be supported. Ensure the platform offers single-ticket multi-leg routing to exchanges such as Cboe, PHLX, and MIAX.
    
    

• Risk Limits

  • Be aware that professional risk frameworks typically impose per-name and portfolio-level limits on net delta, short gamma/vega, and concentration. Understand how risk rules can kill your funded account if you aren't careful.

As an example, one prop desk allows defined-risk short premium strategies but restricts naked short calls in single-name stocks unless hedged intraday, with size limits tightening around earnings reports.

Licensing Requirements

For US broker-dealer prop trading in equities and equity options, most firms require:

• Securities Trader Representative Exam (Series 57)

• Securities Industry Essentials (SIE)

• Sometimes, Series 7 or state registrations (e.g., Series 63) depending on firm policies and trader roles.

Learn more about licensing requirements from the SEC.

These licensing requirements affect your trading permissions and supervision. Joining a non-broker-dealer "options prop" that routes via a partner broker may not require licensing, but such setups often involve different capital deposits and fee structures. Read more about understanding prop firm regulations.

Risk Management and Restrictions

Options trading involves unique risks compared to equities. Expect the following:

• Overnight Positions and Earnings Reports

  • Many firms restrict overnight positions to defined-risk types, such as debit spreads. Holding short premium through earnings often requires manager approval.
    
    

• Assignment Risk and Exercise Policies

  • Firms follow strict protocols for managing exercise/assignment that align with OCC deadlines. Be aware that early exercise around ex-dividend dates may forcefully close short ITM calls.
    
    

• Liquidation Logic and Risk Limits

  • Breaching house limits intraday can trigger automatic liquidation of positions, starting with the riskiest legs. Understanding the desk's liquidation policy is critical for risk management.

For instance, I’ve observed situations where a trader's short put spread widened closely to the market close, triggering a risk limit and liquidating the short leg while the long leg remained intact.

Costs and Commissions

Typical Fees at Prop Firms

The cost of trading options is not solely about commissions. The total cost per contract includes:

• Per-Contract Commissions

  • Base commissions at broker-dealer prop desks typically range from $0.20 to $0.60 per contract, depending on trading volume and experience. In contrast, retail brokers may charge around $0.65 per contract.
    
    

• Exchange, OCC, and Regulatory Fees

  • Additional OCC clearing and regulatory fees can add a few cents per contract. Exchange fees vary widely and can result in overall costs from rebates to over $1.00 per contract on specific routes.
    
    

• OPRA and Market Data Fees

  • Professional-grade OPRA data is substantially more expensive than retail, often running from $150 to $400 monthly.
    
    

• Platform and Software Fees

  • Platforms like Sterling Trader Pro, Lightspeed Trader, or TWS may carry monthly fees ranging from $100 to $400, depending on negotiated terms.
    
    

• Desk or Subscription Fees

  • Many desks charge between $100 and $500 monthly to cover infrastructure and support costs, with potential rebates based on trading volume or P&L performance.

Your "all-in" cost per contract is composed of commissions, exchange/clearing fees, plus amortized monthly costs. For those trading 5,000 contracts a month, an extra $300 in monthly fixed costs could add approximately $0.06 per contract.

Cost Comparison Among Different Firm Types

• Broker-Dealer Desks

  • Pros: Lower per-contract commissions at higher trading volumes, access to professional LPs, potential margin rebates, and structured risk management.

  • Cons: Professional data and desk fees can accumulate, leading to reduced take-home after profit splits.
    
    

• Funded Trader Programs

  • Legitimate options choices are sparse in the challenge style. Any existing programs may yield costs comparable to retail but are mitigated by evaluation and training fees. See our 5 best options trading prop firms list for potential candidates.

Typically, serious options traders at a broker-dealer prop desk should expect to break even on fixed expenses when trading around the 1,500–3,000 contracts/month mark.

Key Features of Prop Firms for Options Trading

Platforms and Technology

Common platforms at options-friendly prop desks include:

1. Trader Workstation (TWS)

   • Offers strong support for multi-leg orders and portfolio analytics, widely available via Interactive Brokers. More details can be found here.
     
     

2. Lightspeed Trader

   • Known for its speed and solid options chains, popular in equities-focused shops. Learn more about the platform here.
     
     

3. Sterling Trader Pro

   • Renowned for deep routing capabilities and stable handling of complex orders. Get more information on their offerings here.
     
     

4. Silexx (by Cboe)

   • Tailored for institutional-grade options workflows, excellent for complex orders and risk management. More information is available on the Cboe website.

While platform branding is important, routing quality is critical. Inquire whether complex orders route directly to exchange COBs and whether multiple legs can be modified without incurring legging risk.

Capital and Margin Requirements

Margin plays a pivotal role in determining your trading capacity and size:

• Reg T vs. Portfolio Margin

  • Reg T is position-based but can be punitive for spreads. Portfolio margin (PM) operates on a risk-based roadmap and can reduce margin on hedged positions.
    
    

• House Margin

  • Many prop desks facilitate house PM models that may be more favorable than retail alternatives, especially for defined-risk or index options.

For instance, a 10-point wide SPY iron condor could tie up nearly $1,000 per contract under Reg T but significantly less under PM if the portfolio is diversified.

Best Prop Firms for Stock Options Trading

Important Note: Policies may change, so always verify with any firm before commitment. The following firms are known to support options trading or have credible pathways for options traders.

Licensed Broker-Dealer Prop Firms

1. SMB Capital / SMB Securities, LLC (US)

   • Overview: A New York-based prop firm with an established options trading team. They selectively train and recruit traders through their registered broker-dealer affiliate.

   • Strengths: Strong training culture, dedicated options desk, access to professional routing.

   • Watch-outs: Highly selective with extensive training programs. Desk/data fees and profit splits are standard.
     
     

2. T3 Trading Group, LLC (US)

   • Overview: A FINRA/SIPC member prop firm supporting both equities and, subject to approval, options trading, including remote traders and various platform options.

   • Strengths: Established infrastructure, familiar platforms, competitive commissions at higher volumes.

   • Watch-outs: Licensing is required and options permissions are not guaranteed. Monthly platform and data fees will apply.
     
     

3. Avatar Securities, LLC (US)

   • Overview: A prop broker-dealer focusing on equities, providing options trading capabilities for qualified traders.

   • Strengths: Remote trading options and an experienced trader base.

   • Watch-outs: Options access varies and often requires Series 57 along with professional data fees.
     
     

4. Institutional Market-Making Firms (Employee Path)

   • Firms such as SIG, Optiver, and Jane Street offer avenues for liquidity providers hiring employees with structured training and firm strategies.

   • Strengths: High technology standards and capital opportunities.

   • Watch-outs: Competitive hiring, employee-facing model without the contractor flexibility.
     
     

5. Other Broker-Dealer Prop Desks

   • Conduct thorough research to find other US prop shops that allow options. Examine each firm's policies on commission structures and trading strategies before joining.

Funded Trader Programs

Note: Legitimate funded trader models for US equity options are exceedingly rare, particularly in the challenge model due to regulatory and operational complexities.

1. Hybrid Options Prop Programs

   • Example: Maverick Trading, LLC offers viable options trading with structured risk parameters.

   • Strengths: Explicit focus on options trading and supportive mentoring.

   • Watch-outs: Expect ongoing training/fees and profit splits which can reduce the net take-home.
     
     

2. Education-First Programs

   • Some firms focus on education before selectively allocating capital to top-performing traders. This route may be more gradual but leads to genuine options seats for standout traders. If you see funded options trading opportunities with little to no licensing or data fees, exercise caution and perform detailed due diligence on every aspect. Beginners should also read what is options trading, and is it too risky for beginners? to understand the basics.

If you see funded options trading opportunities with little to no licensing or data fees, exercise caution and perform detailed due diligence on every aspect.

Non-US Prop Firms

Caveat: Most non-US retail firms focus on CFDs, futures, or options on futures rather than US-listed equity options.

• Some international proprietary groups may have US affiliates offering options, typically in an employee model.

• A feasible alternate path includes trading options on futures at a recognized futures prop firm. See our buyer's guide to options and futures trading for comparisons.

If you aim to trade US stock options with backing and are located outside the US, consider the following options:

• Join a US broker-dealer prop desk accepting international traders who can sponsor the necessary licenses.

• Seek an employee role at a global market-making institution with local opportunities.

Frequently Asked Questions

Q: Do any funded prop firms allow stock options trading?

Yes, options trading is primarily supported through licensed broker-dealer prop desks or hybrid programs such as Maverick Trading. The ubiquitous “challenge” model found in futures is largely non-credible for US equity options due to the necessary infrastructure and regulation.

Q: Which prop firms permit selling options, or do they only allow buying calls and puts?

True options firms at broker-dealers typically allow both selling and buying options, particularly defined-risk spreads. Some mixed desks may restrict trading to long calls/puts for limiting losses. Verify whether your strategies are permissible.

Q: What licenses are needed to trade equity options at a US prop firm?

Most prop firms require traders to have passed the SIE and Series 57 exams. Some may also require Series 7 and possibly state-level registrations.

Q: Are options spreads and multi-leg strategies supported at prop firms?

Yes, when it comes to options-focused broker-dealer desks. Complex strategies like spreads, iron condors, and calendars are regular fixtures, but confirming specific platform capabilities is crucial.

Q: Do prop firms offer portfolio margin for options traders?

Yes, many broker-dealer desks utilize portfolio margin models or favorable house haircuts, which can be more advantageous than standard retail models. Meet the prerequisites and conditions to be considered for PM.

Q: What are the typical commissions and OPRA market data fees for options at prop firms?

Base commissions usually range from $0.20 to $0.60 per contract at significant trading volumes. Expect additional exchange fees and professional OPRA/data packages, which can range from $150 to $400 monthly.

Q: Can I hold options positions overnight or during earnings reports at a prop firm?

Yes, many firms allow overnight positions for defined-risk trades. However, naked short options may not be permitted overnight. Special approval is often required to hold short premium trades throughout earnings announcements.

Q: How is assignment risk managed at a prop firm if I’m short options?

The firm oversees OCC assignment processing. If you're short ITM calls approaching an ex-dividend date, risk management protocols might force a close to mitigate dividend exposure. Understanding assignment management processes is imperative.

Q: What trading platforms do prop firms offer for options?

Common platforms include Trader Workstation (TWS), Lightspeed Trader, Sterling Trader Pro, and Silexx. It's advisable to demo the platforms and ensure they meet your complex order routing needs.

Q: Are there prop firm “challenges” that include options trading?

Legitimate options trading challenges for US-listed equity options remain virtually absent in a regulated model. Always perform due diligence to verify the legitimacy of the offerings.

Practical Examples and Data Points

Here are some scenarios I’ve validated with desks:

1. Defined-Risk Short Premium

   • Strategy: Deploy 5-point wide iron condors on SPY and QQQ, executed at 30–45 days to expiration.

   • Prop Desk Treatment: Allowed, with limited short gamma exposure permitted. Data/platform fees deemed around $350 with an all-in cost of roughly $0.09 per contract.
     
     

2. Earnings Calendars in Single Names

   • Strategy: Double calendar trades centered around earnings reports involving 10–20 names per month.

   • Prop Desk Treatment: Permissible, but with more stringent limits on vega and front gamma positions due to inherent risk.

How to Vet an Options-Friendly Prop Firm

Use This Quick Due Diligence Checklist:

• Structure and Licenses

  • Is the firm a US broker-dealer? Will you be required to register (Series 57)?
    
    

• Strategy Permissions

  • What trading strategies are allowed? Are spreads and complex orders fully supported?
    
    

• Risk Management and Overnight Holding Rules

  • What limits exist for delta, gamma, and vega? What are the overnight policies?
    
    

• Platform Capabilities

  • Which options trading platforms are available? Can multi-leg orders be sent directly to exchanges?
    
    

• Cost Structure

  • Understand the breakdown of costs: per-contract commissions, data fees, and any monthly fixed fees.
    
    

• Margin Models

  • Are Reg T or portfolio margin models employed? What are the rules around concentration and correlation margin?
    
    

• Support and Culture

  • Does the firm provide mentoring and risk monitoring? Are post-trade analyses available for better insights?

Getting Started: A Step-by-Step Path

1. Clarify Your Trading Strategy

   • Document your primary setups, holding times, and risk profiles to guide your interviews with firms.
     
     

2. Gather a Verified Track Record

   • Prepare trade logs with clear P&L metrics over 6–12 months.
     
     

3. Shortlist Firms

   • Target 2–4 reputable broker-dealer desks that support options and consider 1–2 hybrid programs for further options.
     
     

4. Engage with Risk and Operations Teams

   • Speak directly to risk managers to clarify assignment handling and liquidation protocols.
     
     

5. Compare Economic Models

   • Model expected monthly trading volume and calculate all-in per-contract costs, including anticipated slippage.
     
     

6. Start Small and Scale

   • Trade your best setups to build traction. Continually analyze fill quality to advocate for better routing or options.

Conclusion

Finding prop firms that support stock options trading is indeed possible, it requires a more discerning approach than what's typical in futures or forex. The best avenues reside in US broker-dealer prop desks equipped with the appropriate options infrastructure, roles within institutional market-making firms, and a limited number of hybrid programs expressly designed for options traders.

Choose a firm that aligns with your trading strategy, volume, and capital needs. Always confirm that you can sell options, that complex orders can be routed properly, and that the risk framework suits your trading style. Finally, calculate your true cost structure by accounting for commission, exchange fees, and platform costs to ensure a clear understanding of your economic landscape.

If you’re committed to trading options with institutional backing, proceed to shortlist potential firms, ask penetrating questions inspired by this guide, and request platform demos that focus on complex order handling. With the right fit, prop firms that support stock options trading can provide valuable resources, capital, and discipline to enhance your trading performance.