Comment by PowerElectronix
11 hours ago
Usually, when an ITM option expires, the clearinghouse exercises it. I guess you have to jump through some hoops to claim them if they are offered to you through the company, but the stock is owed.
NVDA has also just announced they are buying back stock for 150b, so they could throw some the author's way, hehe.
I think ESOPs (employee equity ownership plan) options work differently. There is no options house in the picture because you’re dealing with the company directly, with no exchange in between.
If the author didn’t exercise his options, then the company would have redistributed the earmarked equity back into the common pool. This is a board-authorized % of equity put aside for stock awards.
No that only applies for options in public stock, Nvidia was private in 1996.
I might stand corrected but I believe there’s a nuance even for public companies. Being awarded options directly (from the company) and not exercising would mean the company does nothing - that is, it keeps the equity. There is no options house or exchange involved hence no external settlement process.