I am using Zorro to trade options and still can't tell for sure how TMFs work with options. Zorro receives tick prices for the underlying. However, it seems no ticks prices are received for a contract for which I hold a position. The prices seem to refresh only at the top of the bar (daily bar). How does Zorro handle Stop and Takeprofits for options in such cases. The documentation is not clear for options

Same as for any other asset. If the broker has only daily prices, you get only daily prices. If they have tick prices, you get tick prices.