Options Trading Tutorial

What happens when employeed who are awarded stock options did not exercise their share options b4 they expire?

What happens to the share options? Do employees lose out in such a case? Thanks!

Public Comments

1. Stock options for an employee is an investment benefit offered by some corporations. There is always some risk involved in any stock purchase. The stock can go down in value and in some rare cases become useless (Enron). Only the individual employee can determine if they are willing to accept the risk of purchasing the stock. What occurs quite often is the stock option has a stated price for x days. The employee watches the price of the stock and if the stock price starts moving up, they calculate in the cost of brokerage fees and if they can make a profit they buy the stock and sale it shortly after wards. However, many of these stock options have restrictions on how soon the stock can be sold or the stock is issued/sold in x number of days. When stock options expire, your only lost is one of opportunity--the opportunity to invest, and POSSIBLY make a profit.