Option repricing

Also called: repricing, option exchange

In one line

When a company lowers the strike price of existing options (or swaps them) to restore their value after the share price falls.

In plain English

If options go underwater, companies sometimes reprice them to current fair market value so they're worth exercising again — a way to re-motivate employees after a drop.

If you were explaining it to a 5-year-old

The club notices your 10-coin voucher is useless now, so it rewrites it to say 6 coins — making it worth using again.

Why it matters when you sell

A repricing can revive dead options into something you could eventually sell, changing your equity's value overnight.

Put it to use

Are my options worth anything?

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

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Option repricing

Related terms

Put it to use