European Style Option
This is a type of options contract that can only be exercised at expiration. Most, but not all, index options settle European Style.
The American Style Option has a different exercise schedule.
Similar Posts
What is Options Time Value?
ByivtradesTime value is whatever the premium of the option is in addition to its intrinsic value. Time value is that part of the premium that reflects the time remaining before expiration. An American-style option may ordinarily be expected to trade for no less than its intrinsic value prior to its expiration, although occasionally an American-style…
How To Set A Stop For Options Swing Trading
ByivtradesThere are three ways that you can go about setting stops on your Options trades and all three methods work well whether you are day trading or swing trading. Method 1: Setting A Percentage (%) Stop Loss This is basically when you take an option trade and set a stop loss on the contract price…
What Is The Options Expiration Cycle?
ByivtradesThe expiration cycle basically refers to the months available for a set of options. An example of an expiration cycle is March, June, September and December.
How To Understand Unusual Options Activity Data
ByivtradesThe best way for me to explain what you are seeing in a typical UOA trade is to show you an example of a typical trade and then break it down for you. The first thing you will probably notice in the image above is that one of the trades says “SWEEP DETECTED” and the…
In The Money Options
These are Option contracts that have intrinsic value. A call option is ITM if the market price of the underlying asset is greater than the strike price of the option. A put is ITM if the price of the underlying asset is less than the strike price. In the image below, “A” marks the In…
What Are “Deep In The Money” Options?
ByivtradesA call option is deep in-the-money when the strike price is well below the current market price. A put option is deep-in-the-money when the strike price is much higher than the current market price. On the Option Chain below, box “A” shows us the Deep in the Money Calls and box “B” shows the Deep…