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Everything You Wanted to Know About Options but Were Afraid to Ask

IBKR Podcasts

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The Difference Between American Style and European Style Options

The OIC has been kind enough to provide us with a great slide that we are going to include in the study notes as well for our listeners if they want to take a look at those. Two types of options there is American and European style. So European style cannot be exercised or assigned early and they have to go all the way out to expiration. But what I really want to talk about right now is American style options that can have an early exercise. A lot of times you'll see this happen when there are special dividends that people announced that were surprising.

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