The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone, welcome back. This is Kirk here again at Option Alpha. Today, I want to talk about on the daily call, the simple difference between American-style and European-style options contracts. It’s a very subtle difference, but like I said in the title of this show today, a very simple difference between these two styles of contracts. Now, most people will end up trading… If you trade options, most of you or the vast majority of the trading that you do will be on an American-style option contract and very few of you… Or if you even do most trading even as you start to scale, very few of the contracts that are out there are what’s called European-style option contracts. Now, the difference between the two really comes down to exercise at assignment, when an option contract can be exercised or assigned. American-style options which again is the vast majority of most ETFs, most stocks… Vast majority of contracts are what’s called American-style. Those contracts can be exercised or assigned any time up unti