Option styles

Generally, there are two types of options – American and European – which are also referred to as “plain vanilla” options. An American option may be exercised any time before the expiration date, while a European option may be only be exercised at the expiration date.

Almost all stock options are American options, while indices are typically classified as European options.

Options that do not fall into the above two categories are termed Exotic options. These option styles are generally more complex, trade over the counter (OTC) and should be dealt with on a case-by-case basis.

Note: to trade OTC options, please contact our trade desk, available Monday to Friday, 8 a.m. to 4:30 p.m. ET, at 1.866.980.9590. A $40 charge per trade applies.
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