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I would like to know whether investors tend to prefer European, American, or exotic (aggregation of several options) stock options, either put or call. I also would like to get an idea of the relative volume traded, or other measure to use for a meaningful comparison of market size, for each option type.

How can I determine this? Are there publicly available information sources? How would I even go about making this comparison?

closed as off-topic by Dheer, Pete B., Freiheit, CactusCake, JTP - Apologise to Monica Feb 4 at 10:26

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  • I'm voting to close this question as off-topic because it is a question seeking a data source. Not 'about' PF per se. – JTP - Apologise to Monica Feb 4 at 10:26
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Traders and institutions are more likely to be involved with options than investors.

As for whether American or European options are preferred, you could base that on the volume of options traded in each category. Even so, that does not distinguish who's trading what.

You utilize (hedging) or trade options based on your outlook (hope?) for the underlying, the volatility of the underlying, the implied volatility of the options, option liquidity, B/A spread width, available expirations (weekly versus monthly), etc. I can't imagine choosing to trade an underlying based on its style of exercise.

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I don't think "popularity" is the right concept. In most cases, there's no choice as to which type of option you can trade. The exchange generally dictates the type of settlement, and very rarely are both types of options traded.

That said, There's not really a downside to either. Any financial difference (e.g. extra benefit of early exercise) will be compensated for in the price, so traders shouldn't "prefer" one or the other - they will trade whichever gives them the best expected return (all else being equal).

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