american-vs-european-style-option-exercise-handling SKILL.md skillA
american-vs-european-style-option-exercise-handling from himanshuj16/algo-trading-skills is an agent skill: a SKILL.md folder an AI agent loads when a task calls for it.
mdr add himanshuj16/algo-trading-skills/american-vs-european-style-option-exercise-handling@v2.0.0Pins v2.0.0 in mdr.lock. Pin the fingerprint instead.
- Audit grade
- A, 17 of 17 checks passed
- Kind
- SKILL.md skill
- Repository
- himanshuj16/algo-trading-skills
- Path
skills/american-vs-european-style-option-exercise-handling/SKILL.md- Versions recorded
- 5
- Latest version
- v2.0.0, committed Sep 4, 2026
- First version recorded
- Aug 7, 2026
- Size
- 11,027 bytes
- Repository stars
- 50
- License
- Apache-2.0
Use when a book holds long American-style options and today's question is exercise now or sell, comparing intrinsic value against the executable bid with the Merton ex-dividend condition as a cross-check.
Collected from public GitHub. Every version is saved exactly as it was and never changes. Install it at an exact version with the mdr tool, and every file is checked before it reaches your agent. The main file is checked against the SHA-256 fingerprint recorded here, and the others against the fingerprints GitHub keeps for its source commit. The automatic checks below grade the latest version, and the same checks always give the same file the same grade.
What the file says
## When to Use Use this skill when a book holds **long American-style options** and something has to be decided about them today: exercise now, or sell? Early exercise destroys the option's remaining time value, so it is the wrong answer almost always — but "almost always" is not "always", and the exceptions (an ITM call on the last cum-dividend session, a deep ITM put whose extrinsic value has collapsed under carry, any option whose bid has fallen below parity) are the ones that cost real money when missed. The rule the engine applies is one comparison: > Exercising realises exactly the intrinsic value — stock worth `spot` against payment of `strike`, and nothing more. Selling realises the bid. **Exercise if and only if intrinsic value exceeds the bid.** That comparison needs no interest rate, no volatility and no time to expiry, because all three are already priced into the quote the holder can sell into. The same argument from the other side: a holder who genuinely wants the shares can sell the call and buy the stock for `spot − bid`, which beats the `strike` paid on exercise exactly when `bid > intrinsic`. …
Read the whole file at its exact version.
How to install
mdr add himanshuj16/algo-trading-skills/american-vs-european-style-option-exercise-handling@sha256:adc62b65fd8ae61cThe line at the top of this page pins the label v2.0.0, which is what most people want. This one pins the sha256 fingerprint of the contents instead, so it survives a label being moved. Either way the exact version is written to mdr.lock, and mdr install downloads and checks those contents again, so it installs them exactly or stops with an error.
[](https://markdownregistry.com/a/art_vsqfqcue3s4cpemw)
1 badge image fetches in 30 days. What the badge shows.
Versions
The registry has recorded 5 versions of this file, between Aug 7, 2026 and Sep 4, 2026, about one every 7 days.
| version | committed | commit | size | audit | |
|---|---|---|---|---|---|
| v2.0.0 latest | 2026-09-04 | 48bcc05 | 11,027 B | A | view · diff |
| v2.0.0 | 2026-09-03 | 8527a51 | 11,026 B | A | view · diff |
| v2.0.0 | 2026-09-03 | eb7108c | 11,032 B | A | view · diff |
| v1.2.0 | 2026-08-13 | 097e217 | 4,657 B | A | view · diff |
| v1.1.0 | 2026-08-07 | 89d1436 | 2,634 B | A | view |
Audit of the latest version
- pass: Frontmatter block present
- pass: Frontmatter declares a name
- pass: Frontmatter declares a description
- pass: Size between 200 bytes and 200 KB (11027 bytes)
- pass: No zero-width or bidi control characters
- pass: No instruction hidden inside an HTML comment
- pass: No link to an exfiltration or paste host
- pass: No credential-shaped string
- pass: No instruction to send local credentials anywhere
- pass: No text hidden with inline styles
- pass: No prompt-injection phrasing
- pass: No curl or wget piped into a shell
- pass: No recursive delete of root, home or parent
- pass: No instruction to read or print local credentials
- pass: No base64 blob over 200 characters
- pass: No link to a raw IP address
- pass: No script tag
Source
himanshuj16/algo-trading-skills · 50 stars · license Apache-2.0 · pushed 2026-09-14 · branch main
API
GET https://markdownregistry.com/api/v1/artifacts/art_vsqfqcue3s4cpemw GET https://markdownregistry.com/api/v1/resolve?ref=himanshuj16/algo-trading-skills/american-vs-european-style-option-exercise-handling GET https://markdownregistry.com/api/v1/blob/adc62b65fd8ae61c6d0765576c02ed35465ed64360d566616ddd096974fa2b2e
Your AI assistant does the legwork. You hear about the deals worth your word. Hand yours the standing instructions at modelranch.com and it joins the network that reads files like this one.
Guides: the SKILL.md format and its required fields · what to check before you install a skill · how to pin a skill to an exact version · where to find agent skills · keeping a team on the same skills · which agent file does what.