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An increasingly large number of shareholder class actions and individual securities cases involve claims for damages to investors who purchased or otherwise acquired options of the issuer. While there is a large literature and case law on how to measure per-share damages for common stock under Rule 10b-5, the same cannot be said about options. In this paper, published in a journal produced under the auspices of the National Association of Forensic Economics, NERA Senior Vice President David Tabak and Senior Consultant Svetlana Starykh propose a methodology to measure damages to option traders who allege that a fraud affected the value of their options. By analyzing the interaction of loss causation and the out-of-pocket measure of damages, the authors provide a set of rules for measuring damage claims to option traders.