European Option
Definition
An option that can only be exercised on the expiration date. SPX index options are typically European-style (cash-settled).
Example
A European put on SPX can only be exercised at expiration. In-the-Money (ITM) Category: Options Definition: An option with intrinsic value. A call is ITM when the underlying price is above the strike; a put is ITM when below the
Related Terms
Frequently Asked Question
What is European Option in trading?
An option that can only be exercised on the expiration date. SPX index options are typically European-style (cash-settled).
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.