American Option
Definition
An option contract that can be exercised at any time before or on the expiration date. Most equity options in the U.S. are American-style.
Example
An American call on AAPL can be exercised any time prior to expiration if profitable. European Option Category: Options Definition: An option that can only be exercised on the expiration date. SPX index options are typically European-style (cash-settle
Related Terms
Frequently Asked Question
What is American Option in trading?
An option contract that can be exercised at any time before or on the expiration date. Most equity options in the U.S. are American-style.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.