There are two types of standardized options. They are American Style or European Style. For the purposes of this blog I will always be talking about American Style Options unless I specifically make reference to European Style Options.

What is the difference between American style versus European style?

American Style Options can be exercised at ANY time.  There are few reasons to exercise an option early, however with American Style Options it IS a possibility.

European Style Options can ONLY be exercised on the exercise date.