Starting with euro style options

Discussion in 'Options' started by TradingPilot, Nov 9, 2007.

  1. Do you guys think it is better to start with euro style index options since you cannot get assigned until the day before expiration and these options are usually very liquid?

  2. I have never seen a post on ET about someone getting assigned early and screwing his position. So I think the worry of early assignment is not justified.
  3. MTE


    Unless you plan on selling ITM calls on stocks going ex-dividend you should be OK with American style options.

    Also, I would consider trading options on SPY, QQQQ, IWM - penny spreads and great liquidity. They are american style though, but that's not a issue in most cases.
  4. Unless you are considering something like the SOX index which is an American style cash settled optio which will give you real delta issues if assigned early you have nothing to worry about. As ssomeone already mentioned be aware of div dates