Stock Options Question

[DblArrow]

I am not an option trader, but with all the news on stock options given to company execs, I have a question.

Options have an expiration date - do these options given to execs (or any other company member) have either an expiration date or strike price? Just curious.

Make 'em pretty, Chris

 

[trdrmac]

dblarrow,

they usually have both. Although the expiration dates are usually years as opposed to months. They also have a strike, but if you have ever heard of repricing, this is the ultimate screw job.

For instance if company X was selling at 50 and is now selling at 5 a 60 dollar strike may be repriced to a 10 strike. Good work if you can get it.

 

[DblArrow]

Originally posted by trdrmac
dblarrow,

they usually have both. Although the expiration dates are usually years as opposed to months. They also have a strike, but if you have ever heard of repricing, this is the ultimate screw job.

For instance if company X was selling at 50 and is now selling at 5 a 60 dollar strike may be repriced to a 10 strike. Good work if you can get it.

Thanks.