Nonstatutory (or Nonqualified) Stock Option A type of employee stock option where ordinary income tax is paid on the difference between the grant price and the strike price, rather than capital gains. Home Resources Startup Law Dictionary Nonstatutory (or Nonqualified) Stock Option Return to Glossary Need legal help? Schedule a free consultation with a world-class startup attorney on LawTrades. LET'S CHAT Roy G. Business Attorney Heather N. Business Attorney Jared S. Business Attorney Tell us about your project We'll connect you with a vetted attorney in just a few minutes. Trusted by top companies like :