This is the price of shares in the stock that your options can be exercised for. A stock option granted as part of your compensation is the right to buy shares of your employer at a future date. An option is called a derivative, since its value changes with the price of shares in the stock, or is derived from the share price. If you exercise an option, you are allowed to buy shares at the price specified in the agreement. This share price is called the exercise, or strike, price. For example, if your employer grants you 100 options that are exercisable for 10 shares each at $10 a share, you can acquire 1,000 shares for $10,000 by exercising all of the options. If the company's stock price is trading above $10, you can sell these shares for a profit. A stock option that can be exercised for a profit today is called an "in-the-money" option.