Option writers are subject to the risk each day their options are exercisable that some or all of them may be assigned.

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Yes. American-style options can be exercised at any time prior to expiration.

You may exercise an option on any trading day between the trade date and expiration

Exercising early may have financial or tax implications

Yes. Short option positions may be assigned at any time prior to expiration.

Assignment can occur on any trading day the option is exercisable

Assignment is typically more likely when an option is in-the-money

Early assignment risk may increase around ex-dividend dates for short call positions.

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No. TradeZero does not support CMTA clearing for retail clients.

Yes. TradeZero may close out option positions prior to expiration.

Important:

Positions may be closed if your account does not have sufficient equity to support potential exercise or assignment

This is most common on expiration day, when risk can increase significantly

Positions may be closed if they are not adequately collateralized

Yes. TradeZero offers trading in U.S.-listed equity, ETF, and ETN options.

You must be approved for options trading before placing options orders

You can apply for options trading in the client portal

TradeZero America does not charge commission when trading options. 

$0.42 option contract fee and an additional $0.65 index option contract fee.





Yes, TradeZero America currently offers trading in US listed Equity, ETF and ETN options.

Yes. The PDT Rule applies to options trading in margin accounts.

What this means:
- You are classified as a PDT if you execute 4 or more day trades within 5 business days
- A day trade includes buying and selling or selling and buying the same option on the same day

Important:
- You must maintain at least $25,000 in equity to generate day trading buying power
- If your account is below $25,000, it will not generate day trading buying power
- A one-time PDT reset may be available

Effective 

, the current Pattern Day Trader (PDT) rule is expected to be replaced with a new 

When an option is exercised, assignment is allocated by the Options Clearing Corporation (OCC).

The OCC assigns exercise notices to clearing firms holding short positions in the same option

The clearing firm then allocates assignments to customer accounts holding short positions

Allocation is typically done using a random selection process across eligible positions

Short option positions may be assigned at any time prior to expiration (American-style options)

Short calls: you must deliver the underlying shares

Short puts: you must have sufficient cash to purchase the shares

You must maintain sufficient equity to support potential assignment"

When the clearing house receives an exercise notice from the Options Clearing Corporation, they assign the notice to a customer who is a writer of an identical option contract.

Exercise assignment notices for option contracts are allocated among customer short positions pursuant to a manual procedure, which randomly selects from among all customer short option positions, including positions established on the day of assignment, those contracts which are subject to exercise.

All short American option positions are liable for assignment at any time. If, for example, an exercise notice is assigned to your account, you must deliver the underlying security to us in the case of a call, and you must deposit cash with us in the case of a put sufficient to properly margin the security within a stated period of time.

If entering an option position which expires on the same day (0dte options), a cutoff time will apply.

Currently, the cutoff time to enter a new position on an equity or etf option is 2 hours prior to regular market closing time. 4PM Eastern on regular market days.

For cash settled index options such as SPX, SPXW, RUT, VIX and others, the cutoff time is 30 minutes prior to regular market close. 3:30PM Eastern on regular market days.

TradeZero America will liquidate positions based upon certain expiration or corporate action related events which, after giving effect to, would create undo risk and/or operation concerns.

If TradeZero America deems the exposure of exercise/assignment will create undo risk then TradeZero America has the right to either liquidate options prior to expiration, allow the options to lapse or allow delivery and liquidate the underlying at any time. Also, the account may be restricted from opening new positions to prevent an increase in exposure.

If TradeZero America determines the exposure is excessive, TradeZero America may liquidate positions in the account to resolve the projected margin deficiency.

If the exercise or assignment of an option would result in a short position in a cash account, the option position may be closed by TradeZero America on the expiration date.

Assignment of options are allocated by TradeZero America's clearing firm.


Do Not Exercise and Exercise submissions must be submitted to TradeZero by 4 PM ET.

ODD is a publication issued by the Options Clearing Corporation that serves as a guide for options traders. 

The document is essential for novice options traders. 

Options involve risk and are not suitable for all investors. The risks inherent to options trading may expose investors to potentially significant losses. 

The ODD, formerly titled Characteristics & Risks of Standardized Options, can be found here: 

https://www.theocc.com/about/publications/character-risks.jsp

TradeZero may close out option positions at its discretion if they present risk or operational concerns.

Insufficient equity to support potential exercise or assignment

Projected margin deficiencies or excessive exposure

Expiration-related risk, especially with in-the-money options

Corporate actions affecting the underlying security

Positions may be closed prior to expiration, allowed to expire, or result in delivery of the underlying, depending on risk

TradeZero may liquidate the underlying position after exercise or assignment if needed

Accounts may be restricted from opening new positions to limit further exposure

If an option could result in a short position in a cash account, it may be closed on expiration day

Short options that are in-the-money at expiration may be assigned.

Assignment is allocated by the Options Clearing Corporation (OCC) through your clearing firm


Short puts: you must purchase the underlying shares

You must maintain sufficient equity to support potential assignment

If your account cannot support the resulting position, TradeZero may close out positions prior to expiration

Yes. Cutoff times apply when opening same-day expiring (0DTE) options positions.

Cash-settled index options (e.g., SPX, RUT, VIX): 3:30 PM ET

Cutoff times may be adjusted based on market conditions or risk considerations"

Do Not Exercise (DNE) and Exercise instructions must be submitted by 4:00 PM ET.

Contact us at options@tradezero.us to submit your request

Requests received after the cutoff may not be processed

Always ensure you have sufficient equity to support any resulting position

The Options Disclosure Document (ODD) is a publication issued by the Options Clearing Corporation (OCC) that explains how options work and the risks involved.

The ODD is required reading for all options traders

It outlines the characteristics and risks of standardized options

Options trading involves risk and may result in significant losses

https://www.theocc.com/about/publications/character-risks.jsp"

Apex Clearing will automatically exercise options at in-the money levels as low as $0.01 on options expiration.

There are cases when Exercise by Exception is removed, and all exercises must be done by instruction.

It is the responsibility of the account holder to know when this is the case.


Options are typically exercised automatically if they are in-the-money at expiration.

Options may be automatically exercised if they are at least $0.01 in-the-money at expiration

In certain situations, automatic exercise may be disabled, and instructions may be required

You are responsible for monitoring your positions and submitting instructions when needed

Ensure you have sufficient equity to support any resulting position"

You are responsible for managing the exercise and assignment risk associated with positions in your account.

You should actively monitor your options positions, especially near expiration

Ensure you have sufficient equity to support any potential exercise or assignment

Failure to manage risk may result in position liquidations

TradeZero clients are ultimately responsible for managing the exercise/assignment risks associated with the positions in their accounts.


 Send your queries to support@tradezero.us and we’ll get back to you promptly.

Options Trading