Strike Price
The fixed price you pay per share when you exercise a stock option — set when the option is granted, regardless of what the shares are worth later.
Quick Answer
Can my strike price ever change after I'm granted an option?
No — the strike price is fixed at grant and does not change even if the company's valuation rises or falls afterward, which is exactly what makes early exercise financially attractive when the spread later widens.
- The strike price is locked in at the grant date
- A rising valuation increases your paper gain, not your cost
- Compare your fixed strike price against the current 409A value
The Lovie Advantage
Lovie shows your strike price next to the current fair market value automatically, so the gap is always visible, not buried in a grant letter.
See how this connects to Fair Market Value. For the formal definition, see IRS Publication 525 on taxable and nontaxable income.
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