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hello and welcome to this session in which we will discuss stock options what is the big idea of stock options stock options are simply giving the employees the option not the obligation the option whether they want to exercise or not to buy the stock at a certain price over a period of time simply put the company would say you have the right if you choose to buy the stock at a certain price and usually that price is fixed simply put what does that mean it means if the price of the stock rises you can buy the the stock price at a certain price and the difference is a profit to you now why do companies give those options well many reasons one is to retain valuable employees what does that mean it means they want to keep you as an employee so they will entice you they would say okay were going to give you a certain number of stock options and as a result to to have those options vested you have to work for a certain years whats going to happen by working certain years they retain you i