A maket that moves substantially - and thus, can move options deep ITM makes it more efficient and less risky to trade European style options rather than American. Only disadvantage is inability to Exercise early. Major advantages: a) Cash-settled. No need to be concerned with messy settlement in shares. b) Cannot be assigned early. c)Avoid being short OEX options - where early assignment is an issue. To read more: http://blog.mdwoptions.com/options_for_rookies/2008/07/european-vs-ame.html Mark
Thanks, Specifically for ES options which are already cash settled. There seems to be very little liquidity or benefit other than avoiding early assignment and EOM accounting.