[temp_praneshp]

>(If a company valuation stays flat, stock options are worthless - but RSUs have value)

Can you help me understand why? I'd expect if you're granted options at a strike price of $Y, you will still make money as long as the valuation at liquidation time is more than $Y.

[yen223]

If the company value stays flat, that means its valuation at liquidation time is equal to $Y

[temp_praneshp]

But in any offer I have received, I've seen two numbers: Preferred value(?): X, and strike price: Y, with Y well below X.

In any case, you don't have to teach me all about options here, I was just curious :)

[MrDarcy]

Put another way, your capital gains are zero.

[bfung]

The kicker is “at liquidation time”, which is unpredictable and unknowable. Most of the time, options go to zero due to company shutdown.