> The specific lie discussed was the idea that granting options was not somehow an "expense" and could be excluded from the accounts.

Stock options for the company's own stock are kind of weird because the company can issue its own stock, which puts them in a much different position than someone selling uncovered calls.

An uncovered call is a potentially unbounded liability. If you issued someone options to buy 10,000 shares for $10 each and then the price went up to $1000, you could be on the hook to have to buy $10M in shares and then sell them for $100,000, i.e. you'd take a $9.9M future loss, and the risk of that is a significant liability.

Whereas if you have 10,000 shares and agree to sell them for $10 each and then the the price goes up to $1000 before they pay you, you don't actually owe anyone that extra money, you just failed to make the $9.9M gain you otherwise would have. It's the same as if you'd sold (or issued new) shares for $10 immediately. But we don't generally book "opportunity cost of selling shares for the current market price" as an expense, do we?