American-style option

American-style option

An option contract that can be exercised at any time between the date of purchase and the expiration date. Most exchange-traded equity options are American style.

---

American-style option. A listed option that you can exercise at any point between the day you purchase it and its expiration date is called an American-style option. All equity options are American style, no matter where the exchange on which they trade is located.

In contrast, you can exercise European-style options only on the last trading day before the expiration date, not before. Index options listed on various US exchanges may be either American- or European-style options.