Is There An Option Prop Firm | TradersYard

Options trading is the holy grail for many retail traders — but try finding a prop firm that genuinely supports it. Most prop firms plaster “trade anything” across their sites, then quietly ban options in the fine print. If you want funded access to options, you’re in for a hunt. Here’s what’s real, what’s hype, and which prop firms actually let you trade options with their capital.

Why Most Prop Firms Don’t Touch Options

Options are a risk manager’s nightmare. Unlike spot forex or index CFDs, options expose the firm to tail risk — especially if traders are allowed to sell naked options. One fat finger and a rogue volatility spike, and a prop firm can lose six figures in minutes.

That’s why 95% of retail prop firms ban options outright. Even the largest forex/CFD prop firms (FTMO, MyFundedFX, TradersYard) stick to spot assets: forex, commodities, indices, and sometimes crypto. No vanilla equity options. No futures options. If you see “options” in their marketing, it’s usually just CFD contracts on indices — not real listed options.

True options prop trading exists, but it’s a niche. The few firms that do allow options trading are overwhelmingly focused on professional traders, require larger capital, and enforce stricter rules than their spot counterparts.

Types of Options Trading at Prop Firms

There’s a world of difference between trading equity options and trading options on futures. Understanding this is essential before chasing a funded account.

• Equity Options: Contracts on stocks/ETFs (AAPL, SPY, TSLA). Only a handful of prop firms allow this, and most require you to be in the US or hold special licenses.
• Futures Options: Options on instruments like ES (S&P 500 futures) or CL (crude oil futures). These are more common in futures-focused prop firms.
• CFD “Options”: Some prop firms let you trade index or volatility CFDs that mimic options behavior, but these aren’t real listed options. Payouts and risk are not the same.

If your strategy needs Greeks, volatility spreads, or real expiration mechanics, CFD options won’t cut it. You need a firm that gives you access to the actual options market.

The Real List: Prop Firms That Allow Options Trading

Here’s a table of the main US and global prop firms supporting options — with account sizes, assets, and key restrictions.

No prop firm in the retail CFD/forex space (including TradersYard) currently allows real listed options trading. If you see “options” on a CFD prop firm’s website, it means CFDs that imitate index options, not true CBOE-listed contracts.

What About CFD Options at Forex Prop Firms?

CFD brokers sometimes offer binary or “vanilla” options on indices, but these aren’t the same as trading SPX or QQQ options. The Greeks are synthetic, liquidity is internalized, and you can’t run multi-leg strategies with precision.

If you want to scalp SPX weekly puts or run iron condors on AAPL, CFD options won’t let you do it properly. You need a regulated options broker, and by extension, a prop firm that can sponsor you.

Key Rules: What Prop Options Traders Must Know

Options prop firms are far more restrictive than spot forex firms. Here’s what you’ll face if you want a funded options account:

• No Naked Short Options: Selling puts or calls without underlying is universally banned. Most firms only allow spreads or covered positions. Blowups from naked shorts have killed entire desks before.
• No Holding Through Expiry: Must close ITM options before expiration. Prop firms don’t want exercise/assignment risk.
• Daily and Total Drawdown: Strict. Usually 3–5% daily, 8–12% total. Hit these and your account is closed.
• Larger Minimum Accounts: Most start at $25,000–$50,000. No $5K challenge accounts here.
• Higher Evaluation Fees: Expect $150–$400/month or a multi-thousand-dollar capital deposit at professional firms.
• Geographic Restrictions: Many require US residency or legal status. Some require Series 7/63 or similar licenses.

If you’re used to the “no time limit, $149 fee” model from TradersYard or FTMO, options prop is a different universe: more capital, more rules, more scrutiny.

How to Pass an Options Prop Firm Evaluation

Passing an options prop evaluation is much harder than forex or futures. Here’s what actually works:

• Trade Defined-Risk Spreads: Iron condors, verticals, calendars — anything with limited loss. Firms love these.
• Keep Position Size Small: Never risk more than 1–2% of account per trade, even on spreads. Options can gap through strikes.
• Avoid Earnings/Dividends: Most firms ban holding positions through binary events. Check the calendar before opening.
• Close ITM Before Expiry: Never let an option expire in the money. Assignment risk gets your account closed.
• Document Every Trade: Professional options prop firms want to see your logic. Screenshots and trade notes are mandatory.
• Don’t Overtrade: Most firms have strict limits on contracts per underlying and total open positions.
• Stay Under Drawdown: Hitting your daily or total loss resets everything. One bad day and you’re out.

I passed Topstep’s futures options evaluation by focusing on SPY and ES vertical spreads, never selling naked, and keeping risk per trade under 1%. The moment I tried to get clever with unhedged short puts, risk flagged my account.

Equity Options vs. Futures Options: What’s Actually Funded

Most retail prop firms that allow options only offer futures options. Equity options are rare, high-barrier, and usually require a Series 7 or capital contribution. Here’s why:

• Futures options are easier for prop firms to risk-manage. The contracts are standardized, margin is clear, and assignment is rare.
• Equity options have dividend risk, corporate actions, and higher regulatory oversight. Most prop firms don’t want to deal with that complexity.

If your strategy is based on SPX, NQ, or CL options, you’re in luck — Topstep, Apex, and TradeDay all support those with strict rules. If you want to trade single-name stocks like AAPL or TSLA, your options are basically Maverick Trading or a handful of obscure desk-based firms, and you’ll need to wire in capital.

Why Options Prop Trading Is So Rare

There’s a reason options trading is uncommon in prop. The risks are asymmetric: one trader gone rogue can wipe out a month of firm profits. Most retail prop firms are thinly capitalized and simply can’t afford that exposure.

Regulatory requirements are another hurdle. US-listed options trading requires full KYC, sometimes licensing, and registration with the SEC or CFTC for the firm. That’s a world away from the “sign up in 5 minutes” ethos of forex prop challenges.

True options prop trading is a professional niche, not a mass-market product. If you see a prop firm offering $10K accounts with unlimited options trading for $100, run the other way — it’s either a CFD broker or a scam.

What About TradersYard?

TradersYard is a standout for funded trading in forex, indices, commodities, and crypto — but does not offer real options trading. Here’s why it still matters:

• $10K–$200K accounts with ECN execution on MT5.
• No time limit to pass the evaluation. Take as long as you want.
• Profit targets: 8% (Phase 1), 5% (Phase 2).
• Drawdown: 10% static max, 5% daily — no trailing nonsense.
• Payouts: 80% split from day one, scales to 90% with consistency.
• All-in pricing: $149 (10K) up to $999 (200K). No activation or hidden fees.

If you’re after spot or CFD trading with a prop firm that actually pays, TradersYard is top-tier. But if you want to trade real options, you’ll need to look toward the niche US-based firms above — and be prepared for higher cost, stricter oversight, and a real evaluation.