future stock price
1.0× FMV
keeps falling
recovers
realized ≈ $0
Why boards re-price options after their own stock crashes
stock crashed ~64%
older grants underwater
2021 plan rule
strike = 100% FMV
grant-day strike
struck at the low
the day's low sets the strike
option value
stock price at expiry
strike = grant FMV
pure upside if it recovers
retention spread
day-one intrinsic ≈ $0
re-grant
strike re-stamped lower
price keeps falling
underwater → board re-grants
price recovers
spread paid = retention bought
convexity is the signal — a re-priced strike, not a directional call