It isnt just about being upfront and keeping peoples money tied...

It isnt just about being upfront and keeping peoples money tied up for ages. The biggest detriment is it allows the option price to trade significantly away from fair value and reduces the liquidity in the options. Having punters/traders buy options that are undervalued to exercise and sell out the heads is healthy. It will allow option holders who cant afford to exercise the options to sell them out without crossing a significant spread. Now if you sell out the options you can only sell volume at between a 20% and 50% discount to what they are worth which is a disgrace. Management should stick to their day job without trying to manipulate the market (as has been suggested by few as a good thing)