Reload Stock Option

Reload Stock Option

A replacement stock option granted by some companies to optionees upon a stock swap. The number of reload shares granted is equal to the number of shares delivered to exercise the option plus, in some cases, any shares withheld for tax withholding obligations. The exercise price of the new option is the current market price. The option generally expires on the same date that the original option would have.

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Reload Stock Option

Stock options that can be traded for more stock options. When this option is exercised, the option holder pays the strike price in stock already in his/her possession, rather than in cash. A reload option must be exercised prior to the expiry date because the new stock options retain the former expiry date. A new strike is set, equal to the market value of the underlying stocks at the time the first option is exercised. This is useful to an employee if he/she wishes to set a new, lower strike for the option. See also: Early exercise.