stock options

Cultural  

1. The right to purchase a company's shares at a future date at an agreed price. Companies often give stock options to their executives as an incentive to improve the company's performance and boost its share price. If the share price has risen above the agreed price of the option by the time the option is exercised, the executive stands to make a considerable profit.

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Example Sentences

This wouldn’t be news except for the fact that the strike prices for the included stock options range from $1,116 a share to $3,727.

From Barron's

The Facebook owner revealed a new executive pay plan, including stock options that will be fully realized only if the share price climbs around 500% by 2031.

From Barron's

The stock options that the DeepMind scientists had mentally written off might soon be worth a fortune.

From The Wall Street Journal

“As with all stock options, there is only value if the share price meaningfully exceeds the exercise price, and in this case, it must be on an exceedingly aggressive 5-year timeline.”

From The Wall Street Journal

Friday delivers a “triple witching” event, with the quarterly expiration of stock options, stock index futures, and stock index options.

From MarketWatch