An American-style, non-standard option that neither expires nor has an exercise limit. Since it has an infinite time to maturity, which means its value doesn’t depend on the passage of time (i.e., it is time-independent), this option can be exercised at any time. However, once exercised, the non-expiring option dies out as any other option does. As such, the expiration risk is non-existent in this type of options, and therefore it is superior to a standard option.

The option would be exercised as soon as the underlying’s price reaches a specific level (called the optimal exercise point) where the option price and the payoff converge.

The non-expiring option has other different names such as: perpetual option, expirationless option, and XPO.