Originally Posted by chiefzilla1501
Then tell me what's incorrect. If your stock option is underwater (strike price is higher than actual stock price), you won't exercise the option and your option is basically worth $0. You can't lose money on an option. You can only not make money on it. That's at tremendous difference in terms of downside risk.
Rather than insulting, tell me what is incorrect.
Thats true up to a point. As you state it it is 100% correct. But if that option represents a substantial part of your compensation and it drops to the negative side, then in essence what you hoped, or had valued it in your planning, then you just took a hell of a hit in income.
Its a matter of perspective at that point.