Vanguish.... you are showing your ignorance again. 

You don't seem to even understand how a stock option works.


Can it be that you are so vocal and obviously consumed with following a stock but you don't even understand the basics?

Those stock OPTIONs that were granted (150,000 at a price of 15 cents) are right now worth precisely 0$.  In fact at this very moment they are 5 cents underwater so if he owned them and exercised the options which would have been silly since they were above market price he would be $7500 in the hole. Let's assume the options are still un-exercised/vested.

If the SHI shares go back up to 15 cents, those 150,000 OPTIONs will be worth $0.

If the SHI shares go up to 16 cents, those OPTIONS will be worth $1500 but that would mean the holder would need to first agree to exercise the options and buy them with a cash outlay of their own funds of $22,500 and then sell them on that very same day before the share price moves.

If this person does buy them and uses his own $22,500 then the stock goes down to 5cents.... he loses 2/3 of his value just like everyone else does.

He isn't getting shares.... he is getting the option to BUY shares at 15 cents.

The reason he is getting them is because SHI has plenty of hope, and not much cash.

If he believes that the value of an SHI share will be much higher than 15 cents and works toward an increase in the share price to, lets say, a dollar per share (for easy math), then he can decide to exercise his shares and will suddenly have 150,000 shares that he paid $22,500 cents for but are suddenly (same day) worth $150,000.  Essentially, he gets to keep the old price tag on the item (the SHI share) while others have to pay what is on the NEW price tag (the daily SP).

If the share price for the rest of us doesn't go up beyond 15 cents, he gets NOTHING for the options.  They are an incentive tool to work toward the betterment of the entire company market cap.

Once those options are exercised, they are part of Murton's portfolio just like they are for the rest of us and they can go up or down and yes, he too, can lose.

Smarten up or shut....p

HnG