I play options a lot in the stock market, sometimes I got a stock split or merge, and my share of options increases or decreases or they just give me shares of a spin-off company.
If you did not work for that company, it is not earned income. If they give you 1099, then it becomes your income as a self employee, or some sort of income to schedule C, or investment income in schedule D.
I am no expert, my guest is just adding it into schedule D as an investment,
I could be wrong, that's what I would do.
