Hi everyone, When you are using American Call options, you can earn profits in two ways: by exercising them at any time on or before the expiry date if the underlying price is above the strike price, or you can trade the option itself in the market at any time if its premium has appreciated. While, for a European Call option, you can only exercise on the expiry date if the underlying price is above the strike price to earn a profit. THE QUESTION IS CAN YOU TRADE A EUROPEAN CALL OPTION IN THE MARKET AT ANY TIME LIKE AN AMERICAN CALL OPTION? OR CAN YOU ONLY TRADE THIS OPTION IN THE MARKET ON THE EXPIRY DATE AS WELL?I appreciate if someone could provide me an answer regarding both the US and Canadian MarketBest wishesJF

LOL.. Yes you can trade European options in the market at any time. However, the restriction is: You can only trade them with me... now give me your number and....

FDAXHunter: LOL.. Yes you can trade European options in the market at any time. However, the restriction is: You can only trade them with me... now give me your number and....This is not fair[/]...

You can trade a European option at any time. However, all publicly traded options are American, so a European will be over-the-counter. Any OTC option is a private contract, and you generally cannot assign it. This is not a practical problem if you deal with large professional counterparties using standard documentation, but it can be in other cases.When you buy a publicly traded option on an exchange, your contract is with the clearinghouse, not a specific counterparty. If you later sell the same option on the same exchange, the contracts cancel. But if you buy a call from JPMorganChase and sell an identical call to Citigroup, the two do not cancel. When JPMorganChase goes bankrupt can the call expires in the money, you will owe money to Citigroup that you may not be able to collect from JPMorganChase.

LOL indeed. Has there been any work done on the impact on pricing that the INABILITY to trade an option might have (for example, if it is OTC, and hence not (easily) tradeable)? I know that this topic is very relevant in valuation of executive stock options, but surely it is a general issue? (Now, I know that for options, the only theoretical requirement for pricing is the ability to hedge, and this determines the price whether or not you can sell the option. And that is more or less the issue with executive stock options: big no no to short your own stock. I am talking about the real world here, not so much the theory.)

Aaron: . However, all publicly traded options are American.Dude, that's just plain wrong. If you're going to be the party pooper, at list dispell with the disinformation practice.Aaron: When you buy a publicly traded option on an exchange, your contract is with the clearinghouse, not a specific counterparty.Also wrong. The contract is between you and the GCM (FCM in the US). The GCM (FCM) then has a contract with the clearinghouse.

Sorry, I should have said almost all publicly traded options are American. I know there are some exceptions, like the CBOE SPX, but this rarely matters. American is most significant for very long term options or options on securities with high payouts. I was also imprecise about the relation between the end option trader and the clearinghouse. In most cases, the end user cannot lose money from any counterparty default unless the clearinghouse itself goes.As I said, the illiquidity is not very significant for options with large professional organizations as counterparties and standard documentation. But there are cases where the illiquidity matters a lot. Typically it reduces the value for both parties. One party is willing to accept that loss and compensate the other.

there are listed options such as:spread optionsamerican optionseuropean optionsasian optionsSO more and more... listed options are becoming all different types!I dont know much about warrants, but some of these are exotics... I believe as well... fdax will give all the infoo...