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The distinction between American and European options has nothing to do with geography, only with early exercise. Many options on stock indexes are of the European type.

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And, well, consider options. In a volatile market, options can be a good investment strategy to minimize the risk of owning a long stock - especially an expensive one like Apple.

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Whether you prefer to play the stock market or invest in an Exchange Traded Fund ETF or two, you probably know the basics of a variety of securities. But what exactly are options, and what is options trading? What Are Options?