25 July 2009

American vs Euro Double Take

As I trawl around the options universe I see many statements from the erroneous to the downright dishonest. Occasionally there are statements from ersatz options "experts" that even make me do a double take, so stunning are they in their cretinous ignorance.

Behold the latest example, from someone selling information, producing videos etc:

American vs. European style options:

American style options such as OEX or SPY can be traded anytime. European style options can not be closed until their expiration date. I prefer to trade American style options since I can buy and sell them out when I want.


Of course European style options can be traded into and out of, anytime, just as American style options can. Jesus! We ALL know that one don't we? (For the newbies reading this, American or European style refers to when options can be exercised, not whether they can be closed out or not.)

Further down the page, we are served up this little beauty, in big bold type:

Turn $1000 into $124,000 in One Year!!!

Where do I sign?


ducati998 said...


The amount of misinformation that is promulgated either as a function of stupidity, or fraudulently is at horror levels.

Ultimately, caveat emptor, the market will assign profits and losses accordingly.

jog on

Anonymous said...

That is quite an elementary "mistake". Judging from the design of the site, it looks more like an internet marketing gimmick than one whose sole purpose is to teach options.


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