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by tunesmith 3411 days ago
Is there ever any reason to exercise options with a FMV below the strike price? I know someone who left her job and is in that situation (private company), seems like she should just ignore them entirely and let the options expire. I suppose if she had good reason to believe the company would bounce back they'd be nice to have, but otherwise it seems just like buying stock for more than the going market rate.
1 comments

Access/control is the only reason I can come up with.

Access: One often doesnt have an option to buy shares in a private company besides the granted options.

Control: If one had 49% of share and options as you described for 2% one could take control of the company? Extremely edge case.

She could hold them until just before the expiry to see if they do bounce back in the window.