Basics

European Option

Only exercisable at expiration

What is European Option?

European Option An option that can only be exercised at expiration, not before. Index options (SPX, NDX) are typically European-style. Avoids early assignment risk.

Complete Definition

An option that can only be exercised at expiration, not before. Index options (SPX, NDX) are typically European-style. Avoids early assignment risk.

Related Terms

American Option Exercise Index Options

Want to Learn More?

Explore our educational resources and analytics tools to deepen your understanding.

Learning Center
Exchange-Traded Fund (ETF) All Terms Ex-Earnings HV

Learn Options Trading

Understanding Options Greeks Implied Volatility Guide How to Trade Options 0DTE Options Trading Options Glossary Strategy Guides Learning Center

Explore More Tools

Options Chain Real-time Greeks Greeks Heatmap Visual analysis Volatility Lab IV analysis Strategy Simulator Test strategies IV Intelligence 3D visualization Options Screener Find opportunities Historical Data Past snapshots Earnings Historical moves & IV 0DTE Analytics Same-day expiration