Options come in different styles. The style relates to when the options can be exercised. The two styles are:
- American-Style: At this point in time all stock options traded on the marketplaces are American-style. This means that the option holder can exercise the option at any time from purchase until the expiration date.
- European-Style: A European-style option can only be exercised at expiration. Several index options traded on the marketplaces are European-style.
American-style options are the most common and will be used in all examples in this text.
Where To Trade Options
Options are regulated by the Securities and Exchange Commission (SEC) and are traded by individuals, institutional investors and professional traders in the following securities market places:
|The Chicago Board Options Exchange
|NASDAQ, Inc. PHLX
|The NASDAQ Options Market
|International Securities Exchange
|Boston Options Exchange
|The Chicago Board Options Exchange - C2
Buy and sell orders for options contracts are transacted through brokers. Options' performance can be tracked through the market places on which they trade, in financial tables on many major newspapers,as well as on Nasdaq.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.