The term listed option refers to a put or a call that is traded on a national exchange. Listed options are of two standardized types: American options and European options.
Also known as an exchange-traded option, a listed option is one that is sold on a national exchange such as the Chicago Board Options Exchange, Chicago Board of Trade, the NASDAQ, and New York Stock Exchange. Listed options will be standardized with respect to contract size. The option will also clearly state the terms of the agreement, including the exercise price and expiration date.
Listed options include both American options, which can be exercised at any time before expiration, and European options, which can only be exercised at expiration. Options that are traded over-the-counter are not listed options. The terms and conditions of over-the-counter contracts are not standardized and the marketplace is relatively illiquid when compared to national exchanges, where listed options are traded.