American vs. European Style Options

It is important to understand the difference between American & European-style options. American-style options contracts can be exercised any day on or before the expiration date. European-style options contracts can only be exercised on the expiration date and cannot be assigned early to the option seller. Most index options are European-style options.
American vs. European Style Options
Kirk Du Plessis
Apr 19, 2021

In this training lesson we'll cover the major differences between American and European style options. Pay close attention to this video because most traders get confused as to what they can (or can't do) with each style. Remember that we are specifically talking about the ability to exercise an options contract. Trading either style does not affect your ability to close or trade options prior to expiration should you need to get out of a position.

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Weekly Options Expiration
Weekly options expiration allow traders the opportunity to trade more frequently and utilize specific short-term strategies. Weekly options typically expire every Friday.

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