Options Outstanding

The total number of options that have not been exercised or forfeited. 

For example: An option holder has 1,000 stock options and elects to exercise a vested portion of 500 options.

Mathematically, the calculation is Outstanding = Granted - Exercised - Forfeited. In this example, it would be:

Outstanding Granted Exercised Forfeited
500 1,000 500 0

If the employee left and forfeited the remainder of their option grant, they would have no options outstanding:

Outstanding Granted Exercised Forfeited
0 1,000 500 500