Buffer first
Reach the buffer threshold for your account size. It stays in the account permanently. Every dollar above it is yours to request. Karen posted the exact numbers before you paid.
The Rules
Every rule. Every number. Before you pay a dollar.
Plain English. No asterisks. Karen finds fine print offensive and wrote these so you'd have zero excuse later.
01
Eval phase: hit the target
Profit target: 6% of account size. $3K on $50K, $6K on $100K, $9K on $150K. Hit it.
Max drawdown: 4% on $50K accounts, 3% on $100K and $150K. Exceed it and the eval is over.
No single-day restrictions during eval. Hit the target without blowing the drawdown. That's the whole job.
02
Funded phase: get paid
Buffer threshold: reach $2,000 ($50K), $3,000 ($100K), or $4,500 ($150K). The buffer stays in the account. Profits above it are yours.
30% consistency rule: no single day can exceed 30% of total profit. Karen will not debate why this exists.
7 winning days: seven separate calendar days with daily profit of $200 or more.
Interday trailing drawdown: the floor follows your highest equity ever, including unrealized gains. New high, floor moves up immediately. It never moves back down.
03
What's allowed
Level 4 options and margin. Spreads, defined-risk strategies, the full toolkit.
Swing trading and overnight holds. Hold through the close if your strategy calls for it.
News trading. No blackout windows. Earnings, CPI, FOMC. Trade it if your edge is there.
04
What will breach your account
Exceeding the max drawdown, eval or funded. The account is done. Karen is not interested in the story.
Letting options expire without closing them. All expiring positions must be closed by 4:00 PM ET on expiration day. Even worthless ones.
Sizing up after a loss to chase recovery. The drawdown does not care about your feelings.
Treating the buffer like withdrawable cash. It is not. Karen has said this more times than she should have to.
05
Going live
Karen may push you to a company-managed live account on Tastytrade instead of sending cash. Your payout becomes your starting capital. Real money. 80/20 split, 80% yours.
One live account at a time. Max 5 funded accounts. All other funded accounts are temporarily locked until Karen evaluates your live performance.
$49/month data fee applies to the live account. No per-request payout cap. Withdrawals just can't drop below your starting balance.
Karen decides who goes live and when. She can also limit the number of funded accounts you hold. This is not optional. It is in the Terms and the Trader Agreement.
06
Geographic restrictions
KarenOptions is only available to residents of approved countries. The full list is in the Terms of Service.
Approved regions: United States, Mexico, most of Europe, select countries in Asia, South America, Oceania, and Egypt.
If you are located in a sanctioned or embargoed country, you cannot use the Services. No exceptions.
Using a VPN, proxy, or any tool to mask your location is prohibited and will result in account termination.
The rule most people misread
Interday Trailing Drawdown
The floor trails the highest balance your account has ever reached, including unrealized gains on open positions. The moment your equity hits a new high, the floor moves up. It does not move back down. Ever.
01: You start
$50K account. Max drawdown is $2,000. Your floor is $48,000.
02: Open position runs to $51,500
Your equity hits $51,500, even unrealized, even while the position is still open. The floor immediately moves to $49,500.
03: Position reverses
The trade closes for less. Your balance drops. The floor is still $49,500. It followed your peak equity, not your closed P&L.
The floor follows your highest equity, not your closed P&L, not your end-of-day balance. Unrealized gains count. If your account reaches a new high intraday with an open position, the floor moves immediately.
Payout standards
Three things you need to get paid. Karen made the math visible.
7 winning days
Seven calendar days at $200 or more profit each. Not 7 trades. Not 7 hours. Seven days. The number is the number.
30% consistency
No single day over 30% of total profit. If this rule catches you, you had one big day, not a strategy. Karen can tell the difference.
You've Read The Rules
Now find out if you can follow them.
From $199/mo. Cancel anytime. Every rule you just read is enforced exactly as written.